WAEC Economics 2011 Objective — Question 39

Question 39 of 50 from the West African Examinations Council (WAEC) Economics 2011 Objective paper, with the correct answer and a full explanation.

The function of the Central Bank as lender of last resort means that when all other sources fail

A. A. the consumer can always borrow money from the Central Bank
B. B. the government can ask the Central Bank to print more money
C. C. commercial banks raise loans from the Central BankCorrect
D. D. commercial banks can deposit money with the Central Bank

Explanation

Central Bank is the one that issues new notes and coins after they have been printed. When commercial banks are short of funds, they can borrow from the Central Bank when other sources fail.

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