CFA Practice Question

CFA Practice Question

Which of the following is correct?
A. Every business day, LIBOR is reported by one single agency.
B. LIBOR is the rate at which London wholesale money market banks offer to lend unsecured funds to other 'funded investors' in the form of a CD.
C. LIBOR equals a risk premium (in the range of 0.5% to 1%) plus the average rate at which the world's most creditworthy banks can borrow and lend to each other with maturities between overnight and one full year.
Explanation: LIBOR is reported by multiple agencies. LIBOR is the average rate at which the world's most creditworthy banks can borrow and lend to each other with maturities between overnight and one full year (no risk premium).

User Contributed Comments 2

User Comment
scottm8571 Yes, Thompson Reuters is the agency given responsibility by the BBA for reporting the number.
kritan "(...)the data is released to the market via Thomson Reuters and other licensed data vendors" (www.bbalibor.com).

so I guess it CAN be argued that it is indeed reported by MORE than TR, but still, this is question is needlessly ambiguous.
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