Different banks:
A) may offer loans at different rates.
B) all offer loans at the same interest rate.
C) are mandated to follow the Fed's set interest rate.
D) never offer loans at exactly the same rates.

Question

Quizplus · Accepted Answer

Different banks may have varying lending practices, policies, and procedures, as well as different levels of risk tolerance, so they may offer loans at different rates depending on factors such as credit score, income, loan amount, and collateral, among others. While the Federal Reserve sets short-term interest rates, it does not dictate the rates that private lenders charge borrowers.

Different Banks