The interbank overnight rate is:
A)well below the indicator rate for business lending;otherwise,a company could draw on its overdraft to borrow profitably in the cash market.
B)well above the indicator rate for business lending;otherwise,a company could draw on its overdraft to borrow profitably in the cash market.
C)well below the indicator rate for business lending;otherwise,a company could draw on its overdraft to lend profitably in the cash market.
D)well above the indicator rate for business lending;otherwise,a company could draw on its overdraft to lend profitably in the cash market.

Question

Quizplus · Accepted Answer

The interbank overnight rate is typically lower than the business lending rate, allowing companies to borrow at a lower rate and potentially lend at a higher rate in the cash market.

The Interbank Overnight Rate Is