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Basic of Economicseconomics-mcqs › basic-of-economics
Published
26 May 2019
Last updated
28 May 2026

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What is the name of the interest rate that leading global banks use when lending to one another?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

Choose the correct answer

Explanation

The London Interbank Offered Rate (LIBOR) is the benchmark interest rate at which major international banks lend to each other in the global market. Other options such as NIBOR, IOBOR, and UIBOR are either incorrect or less commonly used terms.

Practice related questions from the same subject.

  1. 1.Which of the following best describes deflation?
  2. 2.Under what condition can two nations benefit from engaging in international trade?
  3. 3.Which of the following represents a legitimate form of currency?
  4. 4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
  5. 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

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Which of the following is rate of interest the major international banks charge each other for borrowings ? - PakMcqs | PakQuizHub