Economy, asked by kashi7040, 11 months ago

Briefly describe the term prime lending rate

Answers

Answered by bapumehar56677
2

A prime rate or prime lending rate is an interest rate used by banks, usually the interest rate at which banks lend to customers with good credit. Some variable interest rates may be expressed as a percentage above or below prime rate.

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Answered by Anonymous
2

Answer:

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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