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WAEC Commerce 2020 Objective — Question 27

Question 27 of 50 from the West African Examinations Council (WAEC) Commerce 2020 Objective paper, with the correct answer and a full explanation.

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The bank which acts as the lender of last resort is the

  • A. Central BankCorrect
  • B. Commercial Bank
  • C. Merchant Bank
  • D. Mortgage Bank

Explanation

When all sources failed the commercial bank, the central bank will always bail out, thus it is lender of last resort.

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