Answered: Which interest rate is used on very…

Which interest rate is used on very short term loans from one bank to another? A. PRIME INTEREST RATE B.TREASURY BILL RATE C. COMMERCIAL PAPER RATE D. FED FUNDS RATE

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 1bM

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Question

Which interest rate is used on very short term loans from one bank to another?

A. PRIME INTEREST RATE

B.TREASURY BILL RATE

C. COMMERCIAL PAPER RATE

D. FED FUNDS RATE

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