LIBOR is
A) a resource used in production.
B) an interest rate paid on Eurodollar loans in the London market.
C) an interest rate paid by European firms when they borrow Eurodollar deposits from U.S. 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, which is an interest rate paid on Eurodollar loans in the London market. It serves as a benchmark for short-term interest rates globally and is used in financial instruments such as swaps, futures, and options. The other options given are not related to LIBOR.

LIBOR Is