Question
Download Solution PDFWhich of the following is also known as the 'lender of the last resort'?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is RBI.
Key Points
- The correct answer is option 3, RBI, which is also known as the 'lender of the last resort'.
- The lender of the last resort is a term used to describe an institution that provides emergency funds to other financial institutions when they are facing a shortage of liquidity.
- This is usually done to prevent a financial crisis or a bank run.
- In India, the Reserve Bank of India (RBI) is the lender of the last resort.
- It has the authority to lend money to banks and other financial institutions in case of a crisis.
- The RBI also acts as the regulator of the banking system in India. It sets policies and guidelines for banks to follow, and monitors their performance to ensure that they are operating in a safe and sound manner.
Additional Information
- SEBI(Securities Exchange Board of India) is the regulator of the securities market in India. It does not have the authority to lend money to financial institutions.
- RRBs (Regional Rural Banks) are a type of bank that focuses on providing banking services to the rural population. They do not have the authority to act as the lender of the last resort.
- SBI (State Bank of India) is a public sector bank in India. While it is one of the largest banks in the country, it does not have the authority to act as the lender of the last resort.
Last updated on Jul 19, 2025
-> The SSC CGL Notification 2025 has been announced for 14,582 vacancies of various Group B and C posts across central government departments.
-> CSIR NET City Intimation Slip 2025 has been released @csirnet.nta.ac.in.
-> The SSC CGL Tier 1 exam is scheduled to take place from 13th to 30th August 2025 in multiple shifts.
-> Aspirants should visit the official website @ssc.gov.in 2025 regularly for CGL Exam updates and latest announcements.
-> Candidates had filled out the SSC CGL Application Form from 9 June to 5 July, 2025. Now, 20 lakh+ candidates will be writing the SSC CGL 2025 Exam on the scheduled exam date. Download SSC Calendar 2025-25!
-> In the SSC CGL 2025 Notification, vacancies for two new posts, namely, "Section Head" and "Office Superintendent" have been announced.
-> Candidates can refer to the CGL Syllabus for a better understanding of the exam structure and pattern.
-> The CGL Eligibility is a bachelor’s degree in any discipline, with the age limit varying from post to post.
-> The SSC CGL Salary structure varies by post, with entry-level posts starting at Pay Level-4 (Rs. 25,500 to 81,100/-) and going up to Pay Level-7 (Rs. 44,900 to 1,42,400/-).
-> Attempt SSC CGL Free English Mock Test and SSC CGL Current Affairs Mock Test.