Which of the following is rate of interest the major international banks charge each other for borrowings ?
Correct answer: C. London Interbank Offered Rate (LIBOR)
- A. New York Interbank Offered Rates (NIBOR)
- B. international Interbank Offered Rates (IOBOR)
- C. London Interbank Offered Rate (LIBOR)
- D. USA Interbank Offered Rate (UIBOR)
Explanation
LIBOR historically represented the London Interbank Offered Rate, the rate at which major banks indicated they could lend to one another. The other names are not the standard international benchmark referred to here.
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