Which of the Following Is True of the Prime Lending

question 51

Multiple Choice

Which of the following is true of the prime lending rate?

• A)It is most commonly used in pricing longer-term loans.
• B)It is the lending rate charged to the FI's lowest-risk customers.
• C)It is also known as LIBOR.
• D)It is the rate for interbank dollar loans of a given maturity in the Eurodollar market.
• E)The best and largest borrowers commonly pay above this lending rate.

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Definitions:

Anode

The positively charged electrode in an electrochemical cell, where oxidation occurs.

Spike Suppression

Techniques or devices used to protect electronic circuits from transient voltage spikes, preventing damage and ensuring reliability.

Power Supply

A device or system that provides the necessary electrical power to operate or charge devices.

Ohms

The standard unit of electrical resistance in the International System of Units (SI), symbolizing the resistance between two points of a conductor.