Vidyalelo
Management · Q407

International Finance and Treasury

Graduate and Post Graduate · Management · question 407

Q407

Interest rate paid on traded Eurodollars is called as

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

Answer: Option B

Solution

Answer: Option B
Solution:
Interest rate paid on traded Eurodollars is called as London interbank offered rate. The London Interbank Offered Rate is the average interest rate at which leading banks borrow funds from other banks in the London market.