Banks Are Most Apt to Quote Short-Term Loan Rates As

question 100

Multiple Choice

Banks are most apt to quote short-term loan rates as:

• A)prime plus a spread.
• B)prime plus inflation.
• C)prime minus inflation.
• D)Federal funds plus prime.
• E)prime minus the discount.

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Definitions:

Stock Market Investor

An individual or entity that allocates capital with the expectation of receiving financial returns in the stock market.

Marginal Tax Rate

The tax rate that applies to the next dollar of taxable income; the percentage of tax applied to your income for each tax bracket in which you qualify.

Taxable Income

The amount of income that is subject to tax, after all allowable deductions, exemptions, and adjustments.

Average Tax Rate

The ratio of the total amount of taxes paid to the total income, showing the percentage of income paid in taxes.