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    Prime rate, the discount rate, and the federal fund rate

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    Please distinguish between the prime rate, the discount rate, and the federal fund rate.

    © BrainMass Inc. brainmass.com October 9, 2019, 5:02 pm ad1c9bdddf
    https://brainmass.com/economics/banking/prime-rate-discount-rate-federal-fund-rate-46395

    Solution Preview

    The Prime Rate is the interest rate charged by banks to their most creditworthy customers (usually the most prominent and stable business customers). The rate is almost always the same amongst major banks. Adjustments to the prime rate are made by banks at the same time; although, the prime rate does not adjust ...

    Solution Summary

    The solution explains the difference between prime rate, the discount rate, and the federal fund rate.

    $2.19