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:

Equity-Financed

A form of business funding where funds are raised by issuing shares of the company, thus not incurring debt but rather exchanging ownership interests for capital.

Total Earnings

The sum of all earnings or income generated by an individual or organization within a specified period.

Market Value

The going price for an asset or service in the open market at which it can be traded.

Equity-Financed

Funded through the sale of owner's shares, rather than borrowing or accumulating debt.