Concept:The Central Bank is the final source of funds for commercial banks in financial difficulty.
Explanation:When commercial banks face a shortage of funds, they first try other sources like other banks or the money market.
If those sources fail, the Central Bank acts as the lender of last resort.
It provides loans to commercial banks to prevent them from collapsing.
This maintains public confidence and stability in the banking system.
Therefore, lender of last resort means commercial banks can borrow from the Central Bank when no other source is available.
Answer:C. commercial banks can raise loans from the Central Bank.