Answer: lends money to banks facing serious shortages.

## Explanation **Correct Answer: A** A central bank's primary functions include: 1. **Lender of last resort** - This is a key function where central banks provide emergency liquidity to banks facing serious shortages or financial distress to prevent systemic banking crises. 2. **Monopoly supplier of currency** - Central banks are typically the sole issuer of a country's currency (Option B is incorrect because central banks are usually the only supplier, not one of many). 3. **Manager of foreign currency reserves** - Central banks actively manage a country's foreign exchange reserves (Option C is incorrect). 4. **Conduct monetary policy** - Setting interest rates and controlling money supply. 5. **Regulator of the banking system** - Overseeing commercial banks and financial institutions. 6. **Government's bank** - Acting as banker and fiscal agent for the government. The statement in Option A accurately describes the lender of last resort function, which is a fundamental role of central banks in maintaining financial stability.

Author: LeetQuiz .