The "Prime" Rate Is ___________________________

question 41

Multiple Choice

The "prime" rate is ___________________________.

• A)The lending rate banks charge their most creditworthy clients
• B)The yield on 91-day treasury bills
• C)The yield on 30-year government bonds
• D)The yield on 1-year government bonds
• E)The yield on corporate bonds

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Definitions:

Condition Precedent

A clause in a contract that requires certain conditions to be met before the contract or parts of it becomes enforceable.

Condition Subsequent

A condition in a contract or agreement that, if it occurs, terminates the contract or agreement or changes the parties' obligations under it.

Incidental Damages

Collateral damages that result from a breach of contract, including all reasonable expenses that are incurred because of the breach; damages that compensate a person injured by a breach of contract for reasonable costs he incurs in an attempt to avoid further loss.

Consequential Damages

refer to losses that result indirectly from a breach of contract, extending beyond the direct and immediate damage.