Lender of Last Resort and Bank Liquidity Quiz

To limit the funds available to struggling banks

To invest in struggling banks for profit

To offer loans to banks experiencing financial difficulty (correct)

To encourage customers to withdraw funds from struggling banks

It encourages customer confidence in the bank

It helps in profit maximization for the banks

It indicates the bank is experiencing a financial crisis (correct)

It is a requirement by the central bank

To invest in struggling banks to boost their profits

To limit the liquidity of all banks

To encourage panic withdrawals from struggling banks

To protect individuals who have deposited funds and prevent panic withdrawals (correct)

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