New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    LIBOR (London Interbank Offered Rate) is being replaced

    by ______________.
    A MIBOR b- Fed Rates Correct Answer Incorrect Answer
    B Rates by Bank of Japan Correct Answer Incorrect Answer
    C Secured Overnight Financing Rate Correct Answer Incorrect Answer
    D Secured Overnight Financing Rate Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    LIBOR, which stands for London Interbank Offered Rate, serves as a globally accepted key benchmark interest rate that indicates borrowing costs between banks. LIBOR is being replaced by the Secured Overnight Financing Rate (SOFR) on June 30, 2023, with phase-out of its use beginning after 2021.

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