The prime interest rate Multiple Choice is lower than the federal funds rate because it is the rate charged to a bank's most creditworthy customers. is influenced by Fed policies that change the money supply.

The prime interest rate Multiple Choice is lower than the federal funds rate because it is the rate charged to a bank's most creditworthy customers. is influenced by Fed policies that change the money supply.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 23QTD

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Question

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The prime interest rate
Multiple Choice
is lower than the federal funds rate because it is the rate charged to a bank's most creditworthy customers.
is influenced by Fed policies that change the money supply.
usually is at the same
as the federal funds rate.
is a benchmark interest rate set directly by the Fed.

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