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.
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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.
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