Rates That the World's Largest Banks Charge One Another for Loans

question 66

Multiple Choice

Rates that the world's largest banks charge one another for loans are called ________.

• A) interbank interest rates
• B) London Interbank Bid Rates
• C) exchange rates
• D) official bank rates

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Definitions:

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Foreign Exchange Gain

A profit arising from fluctuations in the value of foreign currencies relative to one's home currency.

Exchange Rates

The pace at which one form of currency can be swapped for another, affecting international commerce and investments.

Invoice Price

The original price of goods or services listed on an invoice before any discounts, allowances, or additional charges are applied.