Question
What is LIBOR
Solution
LIBOR (London Interbank Offered Rate) is a benchmark rate used by global banks for short-term loans. LIBOR is based on five currencies: U.S. dollar (USD), Euro (EUR), pound sterling (GBP), Japanese yen (JPY) and Swiss franc (CHF), and serves seven different maturities: overnight, one week, and 1, 2, 3, 6 and 12 months. The most commonly quoted rate is the 3 months USD rate.
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