The reference rate of interest in the eurocurrency market is the:
A) London Interbank Offered Rate.
B) Prima rate.
C) Federal funds rate.
D) Treasury rate.

Question

Quizplus · Accepted Answer

The London Interbank Offered Rate (LIBOR) is the reference rate of interest in the eurocurrency market, which is the market for loans and deposits denominated in currencies other than the currency of the country where the bank is located. It is the average interest rate at which a group of banks in London are willing to lend to each other for a stated period of time in a particular currency.

The Reference Rate of Interest in the Eurocurrency Market Is