The Term LIBOR Stands for the London Interbank

question 47

Multiple Choice

The term LIBOR stands for the London Interbank:

• A) offered rate and is the rate charged on prime interbank loans on the Eurodollar market.
• B) obligor rate and is the rate charged on prime interbank loans on the Eurodollar market.
• C) offered rate and is the rate charged on interbank loans worldwide.
• D) obligor rate and is the rate charged on interbank loans worldwide.

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Definitions:

Last Dollar Spent

The concept of allocating resources until the marginal utility of expenditure on each good or service is equal, maximizing utility.

Labor Productivity

A measure of the amount of goods and services produced by one hour of labor.

Capital-Intensive

A business process or industry that requires large amounts of capital investment in comparison to labor.

Average Product

The output per unit of a given input, typically labor, calculated by dividing total product by the quantity of that input.