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Indian Economy MCQ
1. Many a times we read in the financial newspapers that Reserve bank of India is “Lender of Last Resort (LOLR) ” In India. Which among the following statement gives the most correct definition of “Lender of Last Resort”?
(A): (A) If a person or firm which is eligible to get a loan; does not get it from any commercial bank; may approach to Reserve Bank of India for loan.
(B): (B) If the state governments are in crisis and need money for short term ; they can approach RBI for this purpose
(C): (C) If a commercial bank is in crisis; it may place its reasonable demand for accommodation to Reserve Bank of India
(D): (D) A scheduled commercial bank meets all of its demands in all weathers from Reserve bank of India
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