Question

35. The interest rate charged by large banks in London to lend money among themselves is called _________. A. the prime rate B. the discount rate C. the federal funds rate D. LIBOR

Answer 1

Answer:

The correct option is D

Explanation:

LIBOR termed as London Interbank Offered Rate, which is the rate of interest at which the major banks globally lend to another bank in the international market for the loans which are short- term in nature.

LIBOR, serves or states as the accepted key interest rate globally , which states the cost of borrowing among the banks.

Therefore, LIBOR, is the term which is the interest rate charged by banks in London to lend money among themselves.