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Multiple Choice QuestionThe interest rate commercial banks charge their best customers, usually large corporations, for short-term loans is the _____ rate.Multiple choice question.primeprincipalcouponpremium

Question

Multiple Choice QuestionThe interest rate commercial banks charge their best customers, usually large corporations, for short-term loans is the _____ rate.Multiple choice question.primeprincipalcouponpremium

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Solution

The correct answer is "prime rate."

The prime rate is the interest rate that commercial banks charge their most credit-worthy customers, which are usually large corporations. This rate is often used as a benchmark in lending rates for other loans in the market.

So, the answer is: prime rate.

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