Which of the Following Is True of LIBOR

question 16

Multiple Choice

Which of the following is true of LIBOR

• A) The LIBOR rate is free of credit risk
• B) A LIBOR rate is lower than the Treasury rate when the two have the same maturity
• C) It is a rate used when borrowing and lending takes place between banks
• D) It is subject to favorable tax treatment in the U.S.

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Definitions:

Justifiable Reliance

Justifiable reliance is a legal concept where a party makes a decision based on another party's representation or promise, considering the decision reasonable under the circumstances.

Commits Fraud

The act of intentionally deceiving someone in order to gain an unauthorized benefit or harm another person.

Fraudulent Information

False information that is knowingly presented as true to deceive or mislead others, often for personal gain or to fulfill certain objectives.

Confidential Information

Sensitive information that is not public knowledge and is protected from being disclosed, often defined in legal agreements.