Correct answer: (b) 2only
Explanation
- A
1 and 2
1 and 2. LoLR is to banks, not trade bodies.
- B
2only
2 only. Liquidity to solvent banks in a temporary squeeze.
- C
2 and 3
2 and 3. Financing the budget is a separate government-banker role, not LoLR.
- D
3 only
3 only. Wrong function.
Summary. Official key is (b) 2 only. Lender of last resort means the central bank supplies emergency liquidity to banks. It is not a finance window for industry associations or a routine deficit-finance line.
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