In this episode, we break down the prime rate, the interest rate banks charge their most creditworthy customers. While it sounds like a term just for bankers, it directly affects the variable interest rates on your credit cards, home equity lines of credit, and adjustable-rate mortgages. Tune in to discover: * The Math: How the U.S. prime rate is typically set 3 percentage points above the federal funds rate. * The Media: How the Wall Street Journal decides when to update the published rate based on the activity of the top 10 U.S. banks. * Global Variations: A look at how rates differ internationally, from Canada’s 4.95% and Malaysia’s "Base Rate" system to extreme highs in Argentina and lows in Japan. Whether you are tracking student loans or watching the Fed, this episode explains the index that drives your borrowing costs.

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