The prime rate charged by big money center banks can vary greatly (for example, as much as 2 to 4 percentage points) across banks due to banks' ability to differentiate themselves and because particular banks develop particular clienteles, such as mainly making loans to small firms.

Question

Quizplus · Accepted Answer

The prime rate is generally consistent across major banks as it is influenced by the federal funds rate and serves as a benchmark for lending rates, with only minor variations.

The Prime Rate Charged by Big Money Center Banks Can