- CFA Exams
- CFA Level I Exam
- Study Session 11. Corporate Finance (2)
- Reading 35. Working Capital Management
- Subject 5. Managing Short-Term Financing
CFA Practice Question
What is the interest rate that banks in London pay each other for Euro-dollars?
B. London Euro rate (LER)
C. London Eurobond rate (LER)
A. London interbank offered rate (LIBOR)
B. London Euro rate (LER)
C. London Eurobond rate (LER)
Correct Answer: A
The LIBOR is the rate between banks in London.
User Contributed Comments 3
| User | Comment |
|---|---|
| jonan203 | "LIE"bor |
| Inaganti6 | Funny you mention that in the midst of the Libor scandal |
| Freddie33 | LIBOR doesn't just apply to London... |