QQuestionBusiness Management
QuestionBusiness Management
The interest rate charged by banks to their best customers is the:
A. federal funds rate
B. demand rate
C. prime rate
D. discount rate
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Answer
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Step 1I'll solve this step by step:
Step 2: Understand the Key Banking Terminology
The question is asking about the specific interest rate that banks charge their most creditworthy customers. This requires identifying the standard banking terminology for preferred lending rates.
Final Answer
Prime rate Key Insight: The prime rate is the standard reference rate for banks' most reliable customers, serving as a baseline for many other lending products.
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