a) When was Nepal Rastra Bank established?

b) What do you mean by "lender of the last resort"?

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25-07-2024
Business

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a) When was Nepal Rastra Bank established?

b) What do you mean by "lender of the last resort"?

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-07-25T10:58:46-04:00

Final answer:

The Nepal Rastra Bank was established in 1956, and a lender of last resort is an entity that provides emergency loans to financial institutions in times of crisis to prevent widespread bank failures.

Explanation:

Nepal Rastra Bank was established in 1956. A lender of last resort refers to an entity, often a central bank, that provides emergency loans to financial institutions during times of crisis to prevent widespread bank failures and stabilize the financial system. This role is crucial in maintaining confidence in the banking sector and preventing economic downturns.

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