The Interest Rate charged by banks on short term loSol to their largest, most secure and most creditworthy customers is called _______

Options

A. Prime Lending Rate
B. Amortised Rate
C. Discount Rate
D. Variable Rate

Answer

A

Explanation

A prime rate or prime lending rate is an interest rate used by banks, usually the interest rate at which banks lend to favoured customers—i.e., those with good credit. Some variable interest rates may be expressed as a percentage above or below prime rate.