Economics A-Level
Lender of last resort
What Lender of last resort means in Economics A-Level, as defined for AQA.
Definition of Lender of last resort
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Reference: AQA
A function of the central bank that provides liquidity to solvent banks facing temporary cash flow issues, preventing systemic banking crises.
Topics that use Lender of last resort
- Central banks and monetary policy (AQA A-Level)
Related terms
- Aggregate demand
- Credit creation
- Economic governance
- Economic indicators
- Exchange rates
- Financial stability
- Hot money flows
- Inflation
Using Lender of last resort in the exam
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