The ________ Is the Lowest Rate of Interest Charged on Business

question 88

Multiple Choice

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

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

---

Definitions:

Temporary Surplus

A short-term situation where the supply of a product or service exceeds its demand, often leading to price reductions.

Permanent Surplus

A situation where a country consistently exports more goods and services than it imports, leading to a positive balance of trade over time.

Equilibrium Price

The price at which the quantity of a product or service demanded by consumers matches the quantity supplied by producers, leading to a balance in the market.

Equilibrium Quantity

The amount of products or services that are available and sought after at the market's balance price.