LIBOR is
A) a resource used in production.
B) an interest rate paid on Eurodollar deposits 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 (London Interbank Offered Rate) is an interest rate paid on Eurodollar deposits in the London market. It is a benchmark for short-term interest rates globally and is used to price financial products such as loans, derivatives, and mortgages. A is incorrect because LIBOR is not a resource used in production. C and D are also incorrect because they do not accurately describe what LIBOR is.

LIBOR Is