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Prime rate

The interest rate that banks and other lending institutions charge other banks or preferred customers.

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Related terms

prime rate
Banking; Investment banking

(1) Synonym for key interest rate. (2) The rate of interest charged by US/Canadian banks for first-class or prime short-dated commercial paper.

prime rate
Politics; U.S. politics

A rate banks use in conjunction with other rates such as LIBOR and Fed Funds to determine interest rates in lending transactions.

prime rate
Financial services; Home equity

The lowest rate of interest at which money may be borrowed commercially.

prime rate
Financial services; Funds

The interest rate that banks charge their best corporate customers.

prime rate
Real estate; General

The interest rate that banks and other lending institutions charge other banks or preferred customers.

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