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How can banks offer prime minus a percentage, I am feeling stupid asking this question but I really can`t figure this out. If the government sets a prime rate or lets say the National Bank does how can a private bank give a discount off the prime rate? Doesn`t this mean that they lose money giving you a prime rate minus? Or do they get reimburse by the government for he difference in order to stimulate the economy? If so, isn`t it a complete scam and illusion that the government creates? | |||||
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