Question

 How is the prime rate set?

Answer When a bank lends you money, it charges you interest on the amount borrowed. The bank uses many methods to determine the rate of interest they they charge you. The lowest rate a bank offers is the ... Read More »
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Top Q&A For: How is the prime rate set

Is prime rate the commercial lending rate?

The prime rate is now an index, or benchmark, that is set by banks. The banks use it to derive pricing for a number of different loans. Although loans at this rate can be extended to "prime" commer... Read More »
http://www.answerbag.com/q_view/2226547

How Does the Key Interest Rate Compare to a Prime Rate?

The key interest rate that controls the prime rate is known as the overnight fed funds rate. This key rate is the interest rate that banks lend and borrow money at between each other. On the other ... Read More »
http://www.ehow.com/about_6369991_key-rate-compare-prime-rate_.html

How Does the Prime Rate Impact a Mortgage Rate?

The prime rate is set by the Federal Reserve and is the interest rate lenders charge their most creditworthy customers. The "prime" fluctuates in relation to the fed fund rate from the Federal Res... Read More »
http://www.ehow.com/about_6530775_prime-rate-impact-mortgage-rate_.html

What is the difference between the prime rate&the target rate?

The prime rate and the target rate are both interest rates that help determine how much it costs to get a loan from the bank. One rate influences the other.The Prime RateThe prime rate is the benc... Read More »
http://www.answerbag.com/q_view/2072605


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