Which organization is known as the ‘Lender of Last Resort’?
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The organization known as the “Lender of Last Resort” is typically the central bank of a country. In many countries, including the United States (where the Federal Reserve serves this role) and India (where the Reserve Bank of India fulfills this function), the central bank acts as the lender of last resort. This means that during financial crises or when banks face liquidity shortages and are unable to obtain funds from other sources, the central bank provides them with liquidity and acts as a lender of last resort to maintain financial stability and confidence in the banking system.