What is the interest rate offered by banks to only their most creditworthy commercial customers?
A) Fixed
B) Prime
C) Variable
D) Prime plus 1
E) Below prime
Answer: B
Explanation: B) As long as terms and conditions are clearly revealed to borrowers, banks may set their own interest rates, within limits set by each state. Traditionally, banks only offered the lowest rate or prime rate to their most creditworthy commercial customers. Most commercial loans are set at markups over prime, like prime + 1, which means 1 percent over the prime rate.
You might also like to view...
Identification may be made by either the seller or the buyer
a. True b. False Indicate whether the statement is true or false
In what different ways can a lawyer fulfill pro bono obligations?
What will be an ideal response?
Leona Figueroa is a new employee in the payroll department of Octolium Computers. After working at the company for one week, she asks you why it is so important to submit new hire documentation. What guidance will you offer her?
What will be an ideal response?
The moral dimension of ________ can be described as the obligations that individuals and organizations have concerning rights to intellectual property
A) property rights and obligations B) system quality C) accountability and control D) information rights and obligations E) quality of life