You notice that the interest rate on your credit card is set at LIBOR plus 8.9 percent.Given this,the rate you will pay is primarily influenced by the money market rates in which one of the following?
A) Lisbon, Portugal
B) New York, USA
C) Frankfort, Germany
D) London, England
E) Chicago, USA

Question

Quizplus · Accepted Answer

LIBOR stands for London Interbank Offered Rate, which is the interest rate at which banks lend to each other in the London money market. Therefore, the rate you will pay on your credit card is primarily influenced by the money market rates in London, England.

You Notice That the Interest Rate on Your Credit Card