What is known as ‘Lender of Last Resort’?
A. Whenever the government declares a debt relief, the RBI will have to bear the brunt of it.
B. If a person or firm which is eligible to get a loan, does not get it from any commercial bank, may approach the Reserve Bank of India for a loan.
C. If the state governments are in crisis and need money for short term , they can approach RBI for this purpose
D. If a commercial bank is in crisis, it may place its reasonable demand for accommodation to Reserve Bank of India
Answer:D
What is known as ‘Lender of Last Resort’?
A. Whenever the government declares a debt relief, the RBI will have to bear the brunt of it. B. If a person or firm which is eligible to get a loan, does not get it from any commercial bank, may approach the Reserve Bank of India for a loan. C. If the state governments are in crisis and need money for short term , they can approach RBI for this purpose D. If a commercial bank is in crisis, it may place its reasonable demand for accommodation to Reserve Bank of India