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why are banks able to offer funds more cheaply to many borrowers than can financial markets?

2007-06-11 09:20:13 · 2 answers · asked by Anonymous in Business & Finance ➔ Careers & Employment ➔ Financial Services

2 answers

banks get the prime rate, while other institutions charge prime plus their interest.

2007-06-12 12:47:24 · answer #1 · answered by PO'd 2 · 0⤊ 0⤋

They have tighter credit rules in borrowing so there is less risk.

2007-06-11 09:28:47 · answer #2 · answered by Pengy 7 · 0⤊ 1⤋

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