The Prime Rate Is

question 195

Multiple Choice

The prime rate is:

• A)the interest rate charged by the chartered banks in Canada for lending to their best corporate customers.
• B)the interest rate charged by the chartered banks in Canada for lending to other financial intermediaries.
• C)the interest rate charged by the chartered banks in Canada for lending to the Federal government.
• D)the interest rate charged by the chartered banks in Canada for lending to the trust companies.

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Definitions:

Insufficient Funds

A situation where an account does not have enough money to cover transactions.

Liable

Liable means responsible by law; legally answerable.

Stop Payment

An instruction to a bank not to honor a check or payment previously authorized, often due to disputes or errors in the transaction.

Drawee Bank

The bank upon which a check is drawn and is responsible for paying the amount specified.