What is the prime rate? Why do some banks make loans below the prime rate?
Question:
What is the prime rate? Why do some banks make loans below the prime rate?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
The prime rate is a base loan rate traditionally associate...View the full answer
Answered By
John Aketch
I have a 10 years tutoring experience and I have helped thousands of students to accomplish their educational endeavors globally. What interests me most is when I see my students being succeeding in their classwork. I am confident that I will bring a great change to thins organization if granted the opportunity. Thanks
5.00+
8+ Reviews
18+ Question Solved
Related Book For
Financial Institutions, Markets and Money
ISBN: 978-1119330363
12th edition
Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias
Question Posted:
Students also viewed these Business questions
-
What is the prime rate? Who gets the prime rate?
-
The current spot exchange rate is S0$/ = $1.10/ and the one-year forward rate is F1$/ = $1.11/. The prime rate in the United States is 5 percent. a. What is the prime rate in euros if the...
-
What is the prime interest rate? How does the average bank customer fare in regard to the prime interest rate?
-
Find a harmonic function (x, y) in the right-half plane x > -1 such that on the boundary (-1, y) = 0, y
-
a. Given the shift in the yield curve, does it appear that firms increased or decreased their demand for long-term funds over the last six months? b. Interpret what the shift in the yield curve...
-
U.S. defense budget outlays, 19621981. In order to explain the U.S. defense budget, you are asked to consider the following model: Y t = β 1 + β 2 X 2t + β 3 X 3t...
-
Assume that the flowrate, \(Q\), of a gas from a smokestack is a function of the density of the ambient air, \(ho_{a}\), the density of the gas, \(ho_{g}\), within the stack, the acceleration of...
-
Given the following information, calculate the critical ratios and indicate which activities are on target and which need to be investigated. Comment on the situation for each of theactivities....
-
As a foreign exchange trader at a leading bank in Kenya, you have a customer who would like spot and 30-day forward AS/Yen quotes. Current market rates are: S/KES AS/KES Spot 150.25-34 30-day 30-15...
-
Use the information in Figure 6.15 and the information below to show that the average bond energy of the C H bond is 415.9 kJ mol 1 H f [CH 4 ] = 74.8 kJ mol 1 H at [ 12 H 2 ] = +218 kJ mol 1 H ...
-
Define correspondent banking. Why do banks enter into correspondent relationships?
-
What do we mean by off-balance-sheet activities? If these things are not on the balance sheet, are they important? What are some off-balance-sheet activities?
-
Tuxedo Corporations condensed comparative income statements and balance sheets follow. All figures are given in thousands of dollars, except earnings per share. Additional data for Tuxedo in 2014 and...
-
At White Sands, New Mexico, a car powered by a rocket engine passes you while you are standing still. If you hear the sonic boom \(0.045 \mathrm{~s}\) after the car passes and the angle of the shock...
-
What is the definition of frequency for a nonharmonic periodic wave?
-
Figure P25.16 shows a 100-turn coil of wire of radius \(12 \mathrm{~cm}\) in a \(0.15 \mathrm{~T}\) magnetic field. The coil is rotated \(90^{\circ}\) in \(0.30 \mathrm{~s}\), ending up parallel to...
-
A woman standing on the ground observes a jet directly overhead flying at an altitude of \(20,000 \mathrm{~m}\). If the jet has a speed of Mach 2 and its shock wave makes an angle of \(30^{\circ}\)...
-
(1) Let \(f\) a Borel function satisfying \(0 0\) a.s., but \(\mathbb{P}\left(Z_{\infty}^{f}=0 ight)=1 / 2\). (2) Prove that there exist pairs \((\mathbb{Q}, \mathbb{P})\) of probabilities that are...
-
Why is the average seek time for a hard disk much shorter than for a CD-ROM or DVD-ROM?
-
The liquidliquid extractor in Figure 8.1 operates at 100F and a nominal pressure of 15 psia. For the feed and solvent flows shown, determine the number of equilibrium stages to extract 99.5% of the...
-
Give one example each of moral hazard and adverse selection in private insurance arrangements.
-
Give an example of the time-inconsistency problem that you experience in your everyday life.
-
The most famous financial market in the world is the New York Stock Exchange. Go to www.nyse.com. a. What is the mission of the NYSE? b. Firms must pay a fee to list their shares for sale on the...
-
Compare and contrast different deadlock prevention techniques such as resource ordering, the "hold and wait" condition, and preemptive resource allocation. Which methods are most effective for...
-
The following information is taken from Aden Company's records: Product Group Units Cost/Unit Market/Unit A 1 700 $1.10 $0.90 B 1 250 1.50 1.55 C 2 150 4.90 5.15 D 2 100 6.50 6.40 E 3 80 25.00 24.60...
-
American Food Services, Incorporated leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2024. The lease agreement for...
Study smarter with the SolutionInn App