Which of the following is an administered interest rate set by commercial banks?
A) The discount rate
B) The federal funds rate
C) The prime rate
D) The commercial paper rate

Question

Quizplus · Accepted Answer

The prime rate is the interest rate that commercial banks charge their most creditworthy customers for loans. It is an administered rate that is set by individual banks and is typically based on the Federal Reserve's federal funds rate. The discount rate and the federal funds rate are both set by the Federal Reserve, while the commercial paper rate is determined by the market for short-term debt issued by corporations.

Which of the Following Is an Administered Interest Rate Set