A Bank's Prime Interest Rate Refers To

question 104

Multiple Choice

A bank's prime interest rate refers to:

• A)its cost of funds
• B)the variable rate on housing loans
• C)the rate that applies on loans to their lowest risk business borrowers
• D)the rate that applies to business loans
• E)the interest rate they earn on their holdings of securities

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Definitions:

Astrology

The study of the movements and relative positions of celestial bodies interpreted as having an influence on human affairs and the natural world.

Nonscientific Belief

A belief system or opinion that is not based on the scientific method or empirical evidence, often found in cultural, religious, or personal beliefs.

Universal Gravitation

The law of physics that states that every particle attracts every other particle in the universe with a force that is direct between the masses and inversely proportional to the square of the distance between their centers.

Newton

Refers to Sir Isaac Newton, an English physicist, mathematician, and astronomer who is widely recognized as one of the most influential scientists of all time, especially for formulating the laws of motion and universal gravitation.