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

---

Definitions:

Lump Sum

An individual disbursement occurring at a certain point, in contrast to periodic payments carried out sequentially.

Proceeds

The amount of money received from a sale or transaction.

Interest

The cost of borrowing money, typically expressed as a percentage of the principal, paid by the borrower for the use of lender’s funds.

Compounded Interest

Interest that is computed on both the original amount of money and the interest it has already earned over past periods, whether it’s a savings or a loan.