The prime rate
A) is the annual rate of interest for banks' best customers.
B) changes infrequently
C) is usually lower than treasury bill rates.
D) none of the other answers are correct

Question

Quizplus · Accepted Answer

The prime rate is the annual interest rate that banks charge their best and most creditworthy customers for loans. It is not a fixed rate and can change frequently based on market conditions and the Federal Reserve's monetary policy. The prime rate is typically higher than treasury bill rates, which are considered to be safer investments.

The Prime Rate