The interest rate that banks use as a reference point for interest rates on a wide range of loans to businesses and individuals is the
A)discount rate.
B)term auction rate.
C)prime interest rate.
D)real interest rate.

Question

Quizplus · Accepted Answer

The prime interest rate is the rate that banks use as a reference point for setting interest rates on various loans to businesses and individuals.

The Interest Rate That Banks Use as a Reference Point