A benchmark that banks often use in quoting interest rates to their favored customers is the

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The prime rate is a benchmark interest rate that many banks use to set their own interest rates. It is the rate at which banks lend to their most creditworthy customers and is usually lower than the federal funds rate or discount rate. The 3-month Treasury bill rate is also a commonly used benchmark, but it is more often used in government and institutional contexts rather than by banks for setting their own rates.

A Benchmark That Banks Often Use in Quoting Interest Rates