The Prime Lending Rate Is The

question 50

Multiple Choice

The prime lending rate is the:

• A)risk premium periodically set by the RBA
• B)base lending rate periodically set by banks
• C)base lending rate periodically set by the RBA
• D)risk premium periodically set by banks

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Definitions:

Normal Distribution

A bell-shaped distribution that is symmetric about the mean, where data near the mean are more frequent in occurrence than data far from the mean.

Sample

A subset of individuals from within a larger population used to approximate characteristics of the whole population.

Poisson Probabilities

The likelihood of a given number of events happening in a fixed interval of time or space, assuming the events occur with a known constant mean rate and independently of the time since the last event.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space when these events occur with a known constant rate and independently of the time since the last event.