Vidyalelo
Commerce · Q21

Economics

Graduate and Post Graduate · Commerce · question 21

Q21

Who is the 'lender of the last resort' in the banking structure of India?

A.
State bank of India
B.
Reserve bank of India
Answer
C.
EXIM bank of India
D.
Union bank of India

Answer: Option B

Solution

Answer: Option B
Solution:
Reserve bank of India is the 'lender of the last resort' in the banking structure of India. A lender of last resort is an institution, usually a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse.