Finance
The prime rate is:
AThe rate charged to borrowers with the best credit✓ Correct
BThe interest rate that the Federal Reserve charges member banks for overnight loans
CThe maximum rate allowed on VA loans
DThe rate charged for jumbo loans
Explanation
The prime rate is the interest rate that banks charge their most creditworthy commercial customers. Many variable-rate loans and lines of credit are priced as prime rate plus a margin.
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