The interest rate banks charge on business loans is known as the

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The prime rate is the interest rate that lenders charge to their most creditworthy business customers. It is commonly used as a benchmark for setting other lending rates, such as those for mortgages and consumer loans. The federal funds rate is the interest rate banks charge each other for overnight loans, the primary credit lending rate is the interest rate the Fed charges banks for short-term loans, and the call money rate is the interest rate brokers charge clients for loans to buy securities.

The Interest Rate Banks Charge on Business Loans Is Known