The Benchmark or Prime Rate of Interest for Overdrafts Varies

question 81

Multiple Choice

The benchmark or prime rate of interest for overdrafts varies directly with:

• A) demand for funds in the bond markets.
• B) varying demand and supply for funds in the short-term markets.
• C) varying demand and supply for funds in the long-term markets.
• D) changing asset prices.

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Definitions:

Difference Threshold

The smallest amount by which a stimulus must be changed in order to produce a noticeable variation in sensory experience.

Minimum Transduction

The least amount of energy needed for a sensory system to detect a stimulus.

The Pupil

The opening in the center of the iris of the eye, through which light enters to reach the retina.

Aperture

In optics, the opening through which light travels in devices such as cameras and microscopes, controlling the amount of light that enters.