The Prime Interest Rate Is the

question 71

Multiple Choice

The prime interest rate is the

• A)interest rate on six-month U.S. Treasury bills.
• B)discount rate.
• C)Federal funds rate.
• D)interest rate that banks charge high-quality borrowers.

---

Definitions:

Adjusted Basis

The original cost of a property plus improvements, less any depreciation taken, used in calculating capital gains or losses for tax purposes.

Shares Sold

Refers to the act of selling ownership stakes in a company or investment.

Basis

The amount of investment in a property for tax purposes, used to determine the gain or loss on the sale of that property.

Debt Obligations

Financial commitments related to borrowed money or issued debt, requiring the debtor to repay the borrowed amount along with any agreed-upon interest.