ECONOMICS
MONETARY POLICY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
discount rate
|
|
|
prime rate
|
|
|
wage rate
|
|
|
quantity rate
|
Detailed explanation-1: -The prime rate is the interest rate that commercial banks charge their most creditworthy corporate customers.
Detailed explanation-2: -The prime rate is the interest rate that banks charge their most creditworthy clients, usually banks or extremely wealthy individuals. Though not set by the government, the prime rate runs about 3% above the Federal Reserve’s federal funds rate.
Detailed explanation-3: -What is the Prime Rate? The term “prime rate” (also known as the prime lending rate or prime interest rate) refers to the interest rate that large commercial banks charge on loans and products held by their customers with the highest credit rating.
Detailed explanation-4: -Prime lending rate is the interest rate at which banks lend to its most credit worthy customers.