LIBOR is generally ________ the Fed funds rate because foreign bank deposits are generally ________ than domestic bank deposits.

Name: LIBOR is generally ________ the Fed funds rate because foreign bank deposits are generally ________ than domestic bank deposits.
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LIBOR (London Interbank Offered Rate) is generally higher than the Fed funds rate because foreign bank deposits are considered more risky than domestic bank deposits. The higher rate compensates for the increased risk.

LIBOR Is Generally ________ the Fed Funds Rate Because Foreign