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    Question

    Which institution is commonly known as the "lender of

    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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