Which one of the following rates is generally considered the bellwether rate for bank loans to business firms?
A)money market
B)Fed funds
C)discount
D)prime
E)call money

Question

Quizplus · Accepted Answer

The prime rate is generally considered the bellwether rate for bank loans to business firms. It is the rate at which banks lend money to their most creditworthy customers and is often used as a benchmark for setting interest rates on other loan products. The other rates listed may have an impact on the overall interest rate environment, but they are not typically used as a reference rate for business loans.

Which One of the Following Rates Is Generally Considered the Bellwether