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) is the annual rate of interest for the bank.

Question

Quizplus · Accepted Answer

The prime rate is the annual interest rate offered by banks to their best customers, such as large corporations. It is usually lower than other market interest rates, such as treasury bill rates, and can change frequently based on various economic factors.

The Prime Rate