Question

What is LIBOR

A 1) Local Interest Business Organisation Rate Correct Answer Incorrect Answer
B 2) London Interbank Offered Rate Correct Answer Incorrect Answer
C 3) Legal Interbank Operations Rate Correct Answer Incorrect Answer
D 4) Large Interest Bank Optimisation Ratio Correct Answer Incorrect Answer
E 5) None of these Correct Answer Incorrect Answer

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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