The prime rate of interest fluctuates with
A. the changing supply and demand relationship for long-term funds.
B. the changing supply and demand relationship for short-term funds.
C. the risk of the firm borrowing the funds.
D. demand in the bond market.
Answer:B
The prime rate of interest fluctuates with
A. the changing supply and demand relationship for long-term funds. B. the changing supply and demand relationship for short-term funds. C. the risk of the firm borrowing the funds. D. demand in the bond market.