The most common benchmark used for pricing a bank loan is:
A)LIBOR.
B)bankers' acceptance rate.
C)the prime rate.
D)all of the above

Question

Quizplus · Accepted Answer

While all of the options listed are used as benchmarks for pricing bank loans, the prime rate is typically the most commonly used benchmark in the United States. It is the interest rate that commercial banks charge their most creditworthy clients, and it serves as a baseline for other interest rates.

The Most Common Benchmark Used for Pricing a Bank Loan