The ________ Is the Lowest Rate of Interest Charged on Business

question 107

Multiple Choice

The ________ is the lowest rate of interest charged on business loans by the nation's leading banks to their best business borrowers.

• A) prime rate
• B) commercial paper rate
• C) federal funds rate
• D) treasury bill rate

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Definitions:

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, used to transfer sums from one account to another.

Transaction Analysis

This is the process of reviewing and analyzing a company's transactions to determine their effects on its financial statements.

IFRS

International Financial Reporting Standards are a set of accounting rules and standards that determine how transactions and other accounting events should be reported in financial statements globally.

GAAP

The accounting standards and rules that are broadly adhered to in financial reporting are encapsulated in the Generally Accepted Accounting Principles.