Which of the Following Is True of the Prime Lending

question 51

Multiple Choice

Which of the following is true of the prime lending rate?

• A)It is most commonly used in pricing longer-term loans.
• B)It is the lending rate charged to the FI's lowest-risk customers.
• C)It is also known as LIBOR.
• D)It is the rate for interbank dollar loans of a given maturity in the Eurodollar market.
• E)The best and largest borrowers commonly pay above this lending rate.

---

Definitions:

Secretory Activity

The process of producing and releasing substances such as enzymes or hormones from a cell or gland.

Hypothalamohypophysial Portal

The blood vessel system connecting the hypothalamus and the pituitary gland, allowing for the transport of regulating hormones.

Anterior Pituitary

The front part of the pituitary gland, which releases hormones that regulate several physiological processes, including growth and reproductive functions.

Hormones

Chemical messengers produced by glands in the body, transported by the bloodstream, to regulate physiology and behavior.