The Interest Rate That Banks Use as a Reference Point

question 143

Multiple Choice

The interest rate that banks use as a reference point for interest rates on a wide range of loans to businesses and individuals is the:

• A) Discount rate
• B) Term auction rate
• C) Prime interest rate
• D) Real interest rate

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Definitions:

Business Principles

Fundamental guidelines or rules that underpin the operations and strategies of businesses.

HR Department

The division of an organization focused on recruitment, management, and direction of people who work in it, also known as Human Resources.

Business Acumen

The keenness and quickness in understanding and dealing with a business situation in a manner that is likely to lead to a good outcome.

Sustainability

Refers to the practice of maintaining processes or systems in ways that do not deplete natural or human resources, ensuring long-term ecological balance.