The prime interest rate charged by leading Canadian banks is based on the

Question

Quizplus · Accepted Answer

The prime interest rate charged by Canadian banks is typically based on the Bank of Canada rate, which is the benchmark interest rate in Canada. This rate is set by the Bank of Canada and is used to guide monetary policy and influence borrowing and lending rates for individuals and businesses across the country. While other rates, such as T-bill or bond rates, may also have some impact on banks' lending rates, the Bank of Canada rate is the primary driver of changes in the prime rate. The U.S. Federal Reserve rate is not relevant to the prime rate in Canada.

The Prime Interest Rate Charged by Leading Canadian Banks Is