The rate which is used in major banks in United States as a rate for industrial and commercial loans is _____________?

Correct answer: B. London interbank offered rate

  • A. London intra bank offered rate
  • B. London interbank offered rate
  • C. euro interbank offered rate
  • D. demand intra bank rate

Explanation

LIBOR stands for London Interbank Offered Rate and was widely used as a benchmark for short-term commercial and industrial lending. The other choices are not the standard benchmark name.

Written and checked by , editorLast updated
Report an error

The more specific you are, the faster it gets fixed. A source beats an opinion.

Prefer email? support@testustad.com

About Business Finance

Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.

Practise Business Finance

975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Exams that ask Management Sciences questions like this

Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

More Business Finance questions