LIBOR is:
A) a resource used in production.
B) an interest rate paid on Eurodollar deposits between banks in the London market.
C) an interest rate paid by European firms when they borrow Eurodollar deposits from Canadian banks.
D) the interest rate paid by the British government on its long-term bonds.

Question

Quizplus · Accepted Answer

LIBOR stands for London Interbank Offered Rate and is an interest rate that is used as a benchmark for a wide range of financial instruments, including loans, bonds, and derivatives. It is the interest rate paid on Eurodollar deposits between banks in the London market, making option B the correct choice.

LIBOR Is