Which institution is commonly known as the "lender of

Q: Answer-Which institution is commonly known as the 'lender of last resort'?

The Reserve Bank of India RBI acts as the lender of last resort by providing emergency loans to commercial banks and other financial institutions during times of financial stress or liquidity crises. This role helps maintain stability in the financial system and prevents the collapse of banks.

last resort"?

A Reserve Bank of India (RBI) Correct Answer Incorrect Answer

B National Bank for Agriculture and Rural Development (NABARD) Correct Answer Incorrect Answer

C State Bank of India (SBI) Correct Answer Incorrect Answer

D Securities and Exchange Board of India (SEBI) Correct Answer Incorrect Answer

Solution

The Reserve Bank of India (RBI) acts as the "lender of last resort" by providing emergency loans to commercial banks and other financial institutions during times of financial stress or liquidity crises. This role helps maintain stability in the financial system and prevents the collapse of banks.

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