Asked by Melisa Di?isa?lam on Jun 28, 2024
Verified
The prime rate is defined as the rate of interest banks charge their "best" customers.
Prime Rate
The interest rate that banks charge their most credit-worthy customers, usually a basis for other interest rates.
Interest Banks
Financial institutions that primarily engage in dealings with interest rates, offering services such as saving accounts and loans.
- Grasp the consequences that interest rates, terms of loans, and economic conditions have on finance-related choices.
Verified Answer
SW
Sydni WilliamsJul 05, 2024
Final Answer :
True
Explanation :
The prime rate is indeed the interest rate that commercial banks charge their most creditworthy customers, typically large corporations.
Learning Objectives
- Grasp the consequences that interest rates, terms of loans, and economic conditions have on finance-related choices.
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