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 »

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 »

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 »

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 »