The ________ is,in theory,the interest rate offered to a bank's most credit worthy customers.
A)LIBOR
B)prime rate
C)promissory rate
D)bridge rate

Question

Quizplus · Accepted Answer

The prime rate is the interest rate offered by banks to their most creditworthy customers, such as large corporations. It is typically used as a benchmark for other interest rates, such as variable rate loans and credit cards. The prime rate is often based on the federal funds rate set by the Federal Reserve, but it can also be influenced by market conditions and competition among banks. Options A and C are not accurate financial terms, and option D is not commonly used in reference to interest rates.

The ________ Is,in Theory,the Interest Rate Offered to a Bank's