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The lender of last resort in the banking system is he    

Economics
JAMB 2025

The lender of last resort in the banking system is he

 

 

  • A. commercial bank
  • B. industrial bank
  • C. central bank
  • D. mortgage bank
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Correct Answer: Option C
Explanation

The Central Bank is known as the lender of last resort in the banking system. This is because it provides financial support to banks
or financial institutions facing financial difficulties. The Central Bank can lend money to these institutions to prevent their
collapse, which could have a negative impact on the economy.


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