Which of the following best describes the role of the central bank?

Answer :

When commercial banks are unable to meet a funding shortfall, the central bank, sometimes known as the "lender of last resort," is in charge of supplying funds to the country's economy.

In other words, the central bank funds guards against the collapse of the nation's banking system. A central bank is a financial organisation in charge of monitoring a country's monetary system and policies, controlling the amount of money in circulation, and determining interest rates. Due to their position as a bridge between savers and borrowers, banks serve as financial intermediaries. Savings account holders deposit money with banks, then take interest payments and cash out.

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