Which of the following statements is FALSE?
A)The prime rate is the rate banks charge other banks.
B)With a variable interest rate,the terms of the loan may indicate that the rate will vary with some spread relative to a benchmark rate,such as the yield on one-year Treasury securities or the prime rate.
C)With a discount loan,the borrower is required to pay the interest at the beginning of the loan period.
D)A common benchmark rate is the London Inter-Bank Offered Rate,or LIBOR,which is the rate of interest at which banks borrow funds from each other in the London inter-bank market.

Question

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The Answer of Which of the following statements is FALSE?
A)The prime rate is the rate banks charge other banks.
B)With a variable interest rate,the terms of the loan may indicate that the rate will vary with some spread relative to a benchmark rate,such as the yield on one-year Treasury securities or the prime rate.
C)With a discount loan,the borrower is required to pay the interest at the beginning of the loan period.
D)A common benchmark rate is the London Inter-Bank Offered Rate,or LIBOR,which is the rate of interest at which banks borrow funds from each other in the London inter-bank market.

Which of the Following Statements Is FALSE