The interest rate banks charge to their best customers is the ________ rate.

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The prime rate is the interest rate that banks charge to their best customers, typically large corporations with excellent credit ratings. Variable rates can change over time and may not specifically apply to the bank's best customers. The discount rate is the interest rate the Federal Reserve charges banks for short-term loans, and the federal funds rate is the interest rate banks charge each other for overnight loans.

The Interest Rate Banks Charge to Their Best Customers Is