LIBOR is:
A) a resource used in production.
B) an interest rate paid on deposits of US dollars in the London market.
C) an interest rate paid by European firms when they borrow Eurodollar deposits from Canadian banks.
D) the interest rate paid by the British government on its long-term bonds.

Question

Quizplus · Accepted Answer

LIBOR stands for London Interbank Offered Rate and is the interest rate at which banks can borrow funds from other banks in the international interbank market. It is used as a benchmark rate for short-term loans, derivatives, and other financial products. Therefore, it is an interest rate paid on deposits of US dollars in the London market.

LIBOR Is