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Daniel owns his own computer repair shop. Business has not been good, so Daniel's credit limit has been exhausted, and he needs a short-term loan to help him stay in business. Which institution, known as the lender of last resort, would Daniel most likely turn to for a loan

Sagot :

The institution that is called the lender of the last resort is the finance company.

The following information should be relevant:

  • Daniel should be converted into a finance company where the business provides short-term loans at high-interest rate as compared to the banks.
  • Due to the high-interest rate,  the financial companies should be treated as the lender of last resort for an individual & the businesses where the credit limit could be exhausted having poor credit ratings.

So, the rest of the options are incorrect.

Therefore we can conclude that the institution that is called the lender of the last resort is the finance company.

Learn more about the credit limit here: brainly.com/question/8243881

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