Question: The prime rate is the a. Size of the commitment fee on a commercial bank loan. b. Effective cost of a commercial bank loan. c.

The prime rate is the

a. Size of the commitment fee on a commercial bank loan.

b. Effective cost of a commercial bank loan.

c. Rate charged on business loans to borrowers with high credit ratings.

d. Rate at which a bank borrows from the Federal Reserve central bank.

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