The LIBOR (London Interbank Offered Rate) is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. Specifically, it refers to the rate at which banks offer to lend unsecured funds to other banks in the London wholesale money market or interbank market for a specified period, ranging from overnight to one year.

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The LIBOR Is The

Question 245

Multiple Choice

The LIBOR is the:

A) Rate most international banks charge one another for overnight Eurodollar loans.
B) Long-term relationship between changes in inﬂation rates and changes in exchange rates.
C) Market in which one country's currency is exchanged for another country's currency.
D) Implicit exchange rate between two currencies quoted in a third currency.
E) Agreement to exchange two currencies at a particular point in time.

Correct Answer: