The most common short-term interest rate used in the swap market is
A) the U.S. discount rate.
B) the U.S. prime rate.
C) the U.S. fed funds rate.
D) LIBOR.
E) None of the options are correct.

Question

Quizplus · Accepted Answer

LIBOR (London Interbank Offered Rate) is the most common short-term interest rate used in the swap market, serving as a benchmark for short-term interest rates around the world.

The Most Common Short-Term Interest Rate Used in the Swap