The rate of interest banks charge on short-term loans to their best customers is the ___________?

Answers:1   |   LastUpdateAt:2012-10-24 13:41:51  

Question
Saquta
Asked at 2012-09-29 12:49:02
one . required reserve ration ( RRR ) MedlinePlus b. MedlinePlus federal funds rate c. MedlinePlus prime rate d. money multiplier formula
Answer1scoobyAnswered at 2012-10-24 13:41:42
A and D are obviously throw the theory of questions ( multiple choice thrown away ) . MedlinePlus MedlinePlus B is the interest rate that banks charge each other for short-term loans . For example , if the Bank of Rick has not met the required reserve ratio and the Fed will look at your books the next day, Bor can take a loan from BoA to the federal funds rate in order to meet the ratio . Looks like some kind of weird , but it's just a way to make sure that banks have some leeway around the RRR . MedlinePlus MedlinePlus C is the "best rate " and is offered to low-risk borrowers . When you get a car or a mortgage , you will often see rates banks advertising as "Prime over 2 percent. "
Related Questions
1
  • Answer This Question:The rate of interest banks charge on short-term loans to their best customers is the ___________?