What is Prime. Rate

Question

What is Prime. Rate

Accepted Answer

The prime rate is the interest rate that commercial banks charge their most creditworthy customers.

The prime rate serves as a benchmark for determining interest rates on various loans and credit products.
It is typically set by banks based on the federal funds rate and other factors.
The prime rate is often used as a reference point for adjustable-rate mortgages, credit cards, and business loans.
It can fluctuate over time based on economic conditions and the monetary policy of central banks.
For example, if the prime rate is 4% and a credit card has an interest rate of prime rate plus 3%, the cardholder would pay an interest rate of 7%.

Accepted Answer

Basically prime rate is a the rate of interest that is decided by nation lagrest bank for their prefed customer having a good credit score much variable interest depend on the prime rate

Accepted Answer

Basically prime rate is a the rate of interest that is decided by nation lagrest bank for their perfed customer having a good credit score much variable interest depand on the prime rate

What is Prime. Rate

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