Fixed Income Q31
0. Which of the following statements is the most accurate?
- A
Interbank offered rates are best described as the rates at which major banks can borrow from other major banks against some form of collateral.
- B
Interbank offered rates are best described as the rates at which major banks can issue short-term debt.
- C
Interbank offered rates are best described as the rates at which major banks can borrow unsecured funds from other major banks.
- Option : C
- Explanation : Interbank offered rates represent a set of interest rates at which major banks believe they could borrow unsecured funds from other major banks in the interbank money market for different currencies and different borrowing periods ranging from overnight to one year.
