The most widely used reference rate for standardized quotations, loan agreements, or financial derivative valuations is the ________.
A)Federal Reserve Discount rate
B)federal funds rate
C)LIBOR
D)one-year U.S. Treasury Bill

Question

Quizplus · Accepted Answer

LIBOR (London Interbank Offered Rate) is the most widely used reference rate for standardized quotations, loan agreements, or financial derivative valuations. It is an average interest rate at which major global banks lend to one another in the interbank market for short-term loans. This rate is used extensively as a benchmark for short-term interest rates, as well as being the basis upon which many financial instruments and contracts are valued. The other options are not as commonly used as LIBOR for these purposes.

The Most Widely Used Reference Rate for Standardized Quotations, Loan