(a) False: Commercial bank do not act as the lender of the last resort. It is the Central Bank who provides financial help to the Commercial Banks in the time of emergency that is why ‘central bank’ of the country acts as a ‘lender of last resort’ for the commercial bank. Commercial banks are the unique financial institutions in modem economies which are able to create money in the form of deposit money. 

(b) True: The privatisation of public sector units do not guarantee social welfare because if the major industries are left in the hands of the private sector, they can make them the tools of exploitation of masses and endanger the safety of the country. Private entrepreneurs work with profit motives. The ownership of industries will entail them the right to exploit the consumers and wage earners on the one hand and suppliers of raw materials and finished products on the other. 

(c) True: Producers in a perfect market are price takers because no single firm or single consumer can influence the price because of its negligible share in total supply. As product offered by producer is homogeneous. However, price is determined by the collective actions of all the consumers. 

(d) False: Price of a commodity and quantity supplied have direct relationship not inverse. Supply comes from producer side and it is natural for the seller to offer more of a commodity as price ascends and less of a commodity as price decreases because as price increases his profit also increases and vice-versa. 

(e) False: A rise in income level does not lead to a fall in demand for normal good rather with a rise in income, the purchasing power of people also increases, which in turn encourages the people to demand more of luxuries and comforts.