The prime rate is:
A)the interest rate charged by the chartered banks in Canada for lending to their best corporate customers.
B)the interest rate charged by the chartered banks in Canada for lending to other financial intermediaries.
C)the interest rate charged by the chartered banks in Canada for lending to the Federal government.
D)the interest rate charged by the chartered banks in Canada for lending to the trust companies.

Question

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The prime rate is the interest rate that banks charge their best corporate customers for loans. It is often used as a benchmark for other loans and interest rates in the economy.

The Prime Rate Is