What is the definition of prime rate?

Answer The prime rate is one of several financial indexes that banks look at to make their interest rates competitive. This rate has a big effect on the overall economy.IdentificationThe prime rate refers... Read More »

Top Q&A For: What is the definition of prime rate

What is the Canadian definition of prime rate?

Canadian prime rate refers to the interest rate the bank is currently charging customers for loans. The prime rate is generally the same for all financial institutes and is applied to variable rate... Read More »

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 »

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 »

The Meaning of Discount Rate and Prime Rate?

Regional Federal Reserve Banks make loans to depository institutions through its lending facility. The lending facility is called the "discount window." The interest rate charged by the Fed to de... Read More »