Final answer:
A Central bank provides short-term emergency loans during financial crises and is known as the lender of last resort, ensuring financial stability.
Step-by-step explanation:
The institution that provides short-term emergency loans in conditions of financial crisis is the Central bank. This role is often described as the lender of last resort.
During financial crises, such as the stock market crash of 1987 or the recession of 2008-2009, central banks like the Federal Reserve have stepped in to stabilize the financial system by making emergency loans. These actions help to ensure that financial institutions have the liquidity necessary to continue operations and prevent further economic decline.