The function of the Central Bank as the lender of last resort means that when all other sources fail
The consumer can always borrow money from the Central Bank
The government can ask the Central Bank to print more money
Commercial banks can raise loans from the Central Bank
Commercial banks can deposit money with the Central Banks
Correct answer is C
Central banks act as lenders of last resorts to commercial banks by lending them funds so as to stay afloat when the need arises. If banks get into liquidity shortages (run out of money), then the Central Bank is able to lend the commercial bank sufficient funds to avoid the bank running out of funds.
If a bank ran out of money, people would lose confidence and want to withdraw their money from the bank. The central steps in by lending these banks money so as they can remain in business.
Personal services
Indirect services
Social services
Reflex services
Correct answer is B
Indirect services means services provided without person-to-person contact such as those provided by administration, dietary, laundry, and maintenance. A tent making factory provide their service by producing tents, which are sold to the end user in the market. They do not meet face to face with the users of their products. Hence their services are indirect.
One of the functions of the Central Bank is
Production of goods
Issuing of currency
Presenting budgets
Printing of cheque books
Correct answer is B
Functions of Central Bank
The following are examples of economic goods except
Bottled water
Air
Household utensils
Shelter
Correct answer is B
An economic good is a good or service that has a benefit (utility) to society. Also, economic goods have a degree of scarcity and therefore an opportunity cost. This is in contrast to a free good (like air, sea, water) where there is no opportunity cost.
Air is a free good and not an economic good.