What does R stand for in term LIBOR ........

General Awareness (SEBI) Banking Awareness

What does R stand for in term LIBOR?

This questions was previously asked in

SEBI Grade A (Ph 1 Paper 1 2020)

Rate

Regulations

Ratio

Reserve

Range

- LIBOR stands for "London Interbank Offered Rate."

- This term is widely used in financial systems as a benchmark interest rate.

- It represents the average rate at which major global banks borrow from one another.

Explanation of Options:

- Option 1: Rate - This is the correct choice. LIBOR determines loan rates globally.

- Option 2: Regulations - While LIBOR is subject to regulatory oversight, it doesn't stand for regulations.

- Option 3: Ratio - LIBOR isn’t expressed as a ratio; it’s an interest rate.

- Option 4: Reserve - LIBOR is not related to reserve requirements.

- Option 5: Range - LIBOR specifies a specific rate rather than a range.

Submit Error