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:

Time Measurement Unit

A standard unit of time used in work measurement and time studies to assess the time required for tasks.

Therblig

A basic motion element used in motion study to analyze the physical movements needed to perform a manual operation or task.

Labour Standard

A set benchmark or norm regarding the amount of labor time required to perform a specific task.

Confidence Level

A statistical measure expressed as a percentage that represents how often the true population parameter would fall within a specified range in repeated sampling.