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1. The rate that banks charge to their most creditworthy customers is generally termed as :
- A. Bank rate
- B. Bank rate
- C. Bank rate
- D. Bank rate
Answer: Option C
Explanation:
The prime rate (prime) is the interest rate that commercial banks charge their most creditworthy customers, generally large corporations.
The prime interest rate, or prime lending rate, is largely determined by the federal funds rate, which is the overnight rate that banks use to lend to one another.
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