competition wizard magazine

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 competition wizard magazine published this article page no  45 The central bank is considered to be the lender of last resort for all commercial banks under its domain. Many times banks face liquidity issues and in such scenarios a run on the bank becomes inevitable. Without the help of a central bank an individual bank will collapse in the event of a bank run. However a central bank quickly pumps money as and when demanded by the depositors reinforcing their confidence averting the run and keeping the system alive competition wizard magazine.

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