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Lender of last resort


The term lender of last resort referrs to the capacity of a central bank of a country to bankroll the government of that country and to act as a lender to the smaller banks of the country.

Alternatively, a lender of last resort is a bank, check cashing store or card shark who lends money and then literally charges exorbitant interest and late fees.

See also

01-04-2007 01:30:44
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