The prime rate is
1) the rate banks charge their customers
2) the rate banks charge theirbest customers
3) generally less than the rate on Treasury bills
4) generally greater than the rate on Treasury bills

Question

The prime rate is
1) the rate banks charge their customers
2) the rate banks charge theirbest customers
3) generally less than the rate on Treasury bills
4) generally greater than the rate on Treasury bills​

Quizplus · Accepted Answer

The prime rate is the interest rate that commercial banks charge their most creditworthy customers, generally large corporations. It is often used as a benchmark in lending rates and is usually higher than the rate on Treasury bills, reflecting the risk premium over the virtually risk-free government securities.

The Prime Rate Is