The prime rate charged can vary greatly (e.g.,as much as 2 to 4 percentage points) across banks due to banks' ability to differentiate themselves and because particular banks develop particular clienteles,such as making loans to specialty retailers.

Question

Quizplus · Accepted Answer

The prime rate is a benchmark interest rate used by banks and is usually uniform across major banks because it is largely influenced by the federal funds rate set by the Federal Reserve, not by individual bank policies or client bases.

The Prime Rate Charged Can Vary Greatly (E