The prime rate of interest is
A) the rate the bank charges its most creditworthy borrowers.
B) the rate the bank charges for money it borrows from the Federal Reserve Board.
C) the rate the bank charges its average borrower.
D) the rate the bank charges on home mortgages.

Question

Quizplus · Accepted Answer

The prime rate of interest is generally the rate that banks charge their most creditworthy borrowers, such as large corporations or banks themselves. This rate is often used as a benchmark for other types of loans and interest rates.

The Prime Rate of Interest Is