LIBOR is best defined as the ________.
A) interest rate of the National Bank of London
B) short-term interest rate for dollars held in the Eurodollar market
C) interest rate of the European Union
D) deposit rate that applies to commercial loans in the European Union

Question

Quizplus · Accepted Answer

LIBOR (London Interbank Offered Rate) is a benchmark interest rate that represents the average interest rate at which major global banks can borrow unsecured funds from other banks in the London interbank market. It is used as a reference rate for many financial products, including loans, mortgages, and derivatives. The rate is quoted in various currencies, including dollars, euros, and pounds sterling, but it is most commonly associated with the dollar-denominated Eurodollar market. Therefore, option B is the correct answer.

LIBOR Is Best Defined as the ________