Chapter 3 - Lesson 3
Money and Interest

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 among major banks. The National Financial Services Network web site provides information about the prime rate. Visit the site to answer the following questions.

Suggested keywords: prime rate, National Financial Services Network
Web site: http://www.nfsn.com/library/prime.htm

Your Name:

Today's Date:

Question 1:
What is the current prime rate? How long has it been in effect?

Question 2:
Examine the chart to determine which recent year has had the most changes in the prime rate. What do you think accounted for these changes?

Question 3:
What is the difference between the prime rate and the discount rate?