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(10)One of the _____________ functions of the Bank of Canada is to act as ______

ID: 1135464 • Letter: #

Question

(10)One of the _____________ functions of the Bank of Canada is to act as ______________to the banking system. Select one: a. primary; lender of last resort b. least important; lender of first resort c. least important; an advisor-for-fee d. primary: a deposit insurance provider (10)One of the _____________ functions of the Bank of Canada is to act as ______________to the banking system. Select one: a. primary; lender of last resort b. least important; lender of first resort c. least important; an advisor-for-fee d. primary: a deposit insurance provider Select one: a. primary; lender of last resort b. least important; lender of first resort c. least important; an advisor-for-fee d. primary: a deposit insurance provider

Explanation / Answer

Answer: a

This is the central bank of the country. Lender of last resort is a primary function of such central bank; it means, proving loans to country’s banks or financial institutions if there is any financial difficulty within the country; the phrase “last resort” indicates, when all doors or closed the central bank comes forward with help.