Which part of the economy does the prime rate most directly influence?
A. The number of banks in the Federal Reserve System
B. The amount of treasury securities bought or sold
C. The amount of money banks keep in reserve
D. The interest on loans banks make to customers
SUBMIT

The interest on loans banks charge to customers is the part of the economy that directly influences the most prime rate as it affects the adjustable-rate mortgage.

What is interest on loans?

Interest is the money either owe or get from borrowing or lending money. The amount is expressed as a percentage of the total loan amount.

The interest on loan is the amount which lenders take at predefined percentage. Lending money or depositing funds into an interest-bearing bank account are both ways to earn income.

Thus, option D, The interest on loans banks make to customers is correct that directly influences the economy.

Learn more about the interest on loans here:

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Which part of the economy does the prime rate most directly influence? A. The number of banks in the Federal Reserve System B. The amount of treasury securities bought or sold C. The amount of money banks keep in reserve D. The interest on loans banks make to customers SUBMIT

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What is interest on loans?

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Which part of the economy does the prime rate most directly influence?
A. The number of banks in the Federal Reserve System
B. The amount of treasury securities bought or sold
C. The amount of money banks keep in reserve
D. The interest on loans banks make to customers
SUBMIT