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Tuesday, 27 October 2026
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The differences between the central bank and commercial bank is that the former ...

The differences between the central bank and commercial bank is that the former ____________
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Discount treasury bills
  • B Give loans to the public
  • C Saves valuable of individual
  • D Serves as lender of last resort
Correct Answer: Option D
Explanation:
The central bank serves as the lender of last resort to commercial banks and other eligible financial institutions when they face serious liquidity problems and cannot obtain funds from other sources. This function helps maintain confidence and stability in the banking system.

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