Prime Rate

Business / Taxes / Prime Rate: The prime rate is a benchmark for interest rates on business and consumer loans. For example, a bank may charge you the prime rate plus two percentage points on a car loan or home equity loan. The prime rate is determined by the federal funds rate, which is the rate banks charge each other to borrow money overnight. If banks must pay more to borrow, they raise the prime rate. If their cost drops, they drop the prime rate. The difference between the two rates is three percentage points, with the prime rate always the higher number. The federal funds rate itself is determined by supply and demand, prompted by the actions of the Open Market Committee of the Federal Reserve System to increase or decrease the money supply.

Other Words for Rate

Rate Verb Synonyms: measure, pace, gait, speed, velocity, clip
Rate Noun Synonyms: rank, grade, class, classify, evaluate, estimate, calculate, compute, count, reckon, judge, gauge, assess, appraise, measure
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Base Rate

Business / Finance / Base Rate: British equivalent of the U.S. prime rate. MORE

London Interbank Offered Rate (LIBOR)

Business / Agriculture / London Interbank Offered Rate (LIBOR): The interest rate that major international banks charge each other for large volume loans of Eurodollars (U.S. dollars on deposit outside of the United States). MORE

Potassium Citrate

Entertainment / Photography / Potassium Citrate: Chemical used in blue and green toners. MORE

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