On Friday evening, Bank A loans Bank B Eurodollars that must be repaid the following Monday morning. Which one of the following is most likely the interest rate that will be charged on this loan?

Question

Quizplus · Accepted Answer

The London Interbank Offer Rate (LIBOR) is the most commonly used benchmark for short-term Eurodollar loans between banks. It reflects the interest rate at which banks can borrow from each other in the London interbank market and is therefore the most likely interest rate that Bank A would charge Bank B for a Eurodollar loan with a short term repayment period.

On Friday Evening, Bank a Loans Bank B Eurodollars That