Banks charge the prime rate only to their high-risk customers.

Name: Banks charge the prime rate only to their high-risk customers.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Banks typically charge the prime rate to their most creditworthy and low-risk customers, as the prime rate is the lowest interest rate offered and is reserved for those with excellent credit histories. Higher risk customers may be charged a higher interest rate or may not qualify for a loan at all due to their potential default risk.

Banks Charge the Prime Rate Only to Their High-Risk Customers