Which of the following is generally considered as the bellwether rate for bank loans to business firms?
A) Money market rate
B) Bank rate
C) Call money rate
D) Prime rate
E) Commercial paper rate

Question

Quizplus · Accepted Answer

The prime rate is generally considered as the bellwether rate for bank loans to business firms. This is the interest rate at which banks lend to their most creditworthy customers, such as large corporations. It is also used as a benchmark for other rates, such as adjustable-rate mortgages and credit card rates.

Which of the Following Is Generally Considered as the Bellwether