The rate at which banks will lend Eurodollars is

Question

Quizplus · Accepted Answer

The rate at which banks lend Eurodollars is known as the LIBOR (London Interbank Offered Rate), which is the most commonly used benchmark for short-term interest rates. The prime rate is the interest rate that banks charge their most creditworthy customers, the discount rate is the interest rate at which banks can borrow money from the Federal Reserve, and LIBID (London Interbank Bid Rate) is the rate at which banks are willing to borrow Eurodollars from each other. Therefore, the best choice is B, as LIBOR is specifically designed to reflect the interest rate at which banks are willing to lend Eurodollars to other banks.

The Rate at Which Banks Will Lend Eurodollars Is