Types of Interest Rates Flashcards
1
Q
The rate the banks make available to their best business customers.
A
Prime Rate
2
Q
The rate financial institutions are charged to borrow funds from Federal Reserve Banks
A
Discount Rate
3
Q
The yield on short term (13 week) U.S. debt obligations
A
T-Bill Rate
4
Q
The yield on long-term U.S. government debt obligations of up to 30 years.
A
Treasury Bond Rate
5
Q
The amount individuals pay to borrow for the purchase of a new home.
A
Mortgage Rate
6
Q
The cost of borrowing for large U.S. corporations
A
Corporate Bond Rate
7
Q
The rate for time deposits at savings institutions
A
Certificate of Deposit Rate
