The prime lending rate is defined as:
A)the rate banks borrow from other commercial banks.
B)the rate banks give to their best customers.
C)the rate banks give to their smallest customers.
D)the rate banks borrow from the central bank.

Question

Quizplus · Accepted Answer

The prime lending rate is the rate that banks give to their best customers, typically large corporations or individuals with excellent credit. It is not the rate that banks borrow from other commercial banks, give to their smallest customers, or borrow from the central bank.

The Prime Lending Rate Is Defined As