Which of the following markets is a direct competitor to the prime-rate bank loan market?
A) Certificate of deposit
B) Federal funds
C) Eurodollars
D) Commercial paper
E) Clearinghouse funds
F) Bankers Acceptance

Question

Quizplus · Accepted Answer

Commercial paper is a direct competitor to the prime-rate bank loan market because both are short-term financing options for corporations. Commercial paper typically offers lower interest rates compared to bank loans, making it an attractive alternative for companies looking to finance their operations.

Which of the Following Markets Is a Direct Competitor to the Prime-Rate