The prime rate of interest is the rate charged
A) on time deposits.
B) on consumer installment loans.
C) to major business customers.
D) on mortgages.
E) to the most risky borrowers.

Question

Quizplus · Accepted Answer

The prime rate of interest is the rate charged to major business customers, typically large corporations with a strong credit history. It serves as a benchmark for other interest rates, such as those on loans and mortgages, but it is not directly charged on consumer installment loans or time deposits. It is also not typically offered to the most risky borrowers.

The Prime Rate of Interest Is the Rate Charged