The ________ is the benchmark rate of interest charged on loans to a business borrower by a bank.
A) prime rate
B) commercial paper rate
C) Treasury rate
D) overdraft rate

Question

Quizplus · Accepted Answer

The prime rate is the benchmark rate of interest charged on loans to a business borrower by a bank. It is often used as a reference rate for other loans and financial products. The commercial paper rate refers to the interest rate charged on unsecured short-term debt issued by corporations, while the Treasury rate refers to the interest rate on U.S. government debt securities. The overdraft rate refers to the interest rate charged by a bank on an overdraft on a checking account.

The ________ Is the Benchmark Rate of Interest Charged on Loans