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The interest rate that banks use as a reference point for interest rates on a wide range of loans to businesses and individuals is the _____.

Sagot :

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The interest rate that banks use as a reference point for interest rates on a wide range of loans to businesses and individuals is the discount rate.

What is discount rate?

A discount rate is the rate of return used in corporate finance to reduce future cash flows to their present value. This rate is frequently referred to as a company's Weighted Average Cost of Capital (WACC), needed rate of return, or hurdle rate, which refers to the rate of return investors must achieve relative to the risk involved in the investment.

Therefore,

The interest rate that banks use as a reference point for interest rates on a wide range of loans to businesses and individuals is the discount rate.

To learn more about discount rate from the given link:

https://brainly.com/question/9841818

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