A bank's ____ is the rate it charges its largest and most creditworthy corporate customers.
A)risk-free rate
B)commitment fee
C)prime rate
D)nominal rate

Question

Quizplus · Accepted Answer

The prime rate is the rate that banks charge their largest and most creditworthy corporate customers. The risk-free rate is the rate at which an investor can theoretically lend money without risk, the commitment fee is a fee charged to a borrower to compensate the lender for keeping a line of credit open for a certain period of time, and the nominal rate is the stated rate of interest on a loan or investment, without adjusting for inflation.

A Bank's ____ Is the Rate It Charges Its Largest