One of the Advantages of a Prime Rate Set by a Financial

question 97

Multiple Choice

One of the advantages of a prime rate set by a financial institution is that it is less likely to be affected by:

• A) changes in the bank bill swap rate.
• B) short-term market illiquidity.
• C) short-term credit fluctuations.
• D) all of the given answers.

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Definitions:

Minutes

A unit of time equal to sixty seconds, often used to measure duration or intervals.

Timeplot

A graphical representation showing a sequence of values of a variable over time.

Closing Values

A term often used in finance and investing to refer to the final price of a stock or asset when the market closes for the day.

High

A term which can refer to an elevated status, level, or degree of something, often used in a comparative context.