CURRENT AFFAIRS

Detailed explanation-1: -MIBOR is calculated every day by the National Stock Exchange of India (NSEIL) as a weighted average of lending rates of a group of major banks throughout India, on funds lent to first-class borrowers. This is the interest rate at which banks can borrow funds from other banks in the Indian interbank market.

Detailed explanation-2: -The interbank rate, also known as the federal funds rate, is the interest charged on short-term loans made between financial institutions. The term “interbank rate” may also refer to the foreign exchange rates paid by banks when they trade currencies with other banks.

Detailed explanation-3: -The interbank money market is a market in which banks extend loans to one another for a specified term. Most interbank loans are for maturities of one week or less, the majority being overnight. Such loans are made at the interbank rate (also called the overnight rate, if the term of the loan is overnight).

Detailed explanation-4: -What are IBORs? Interbank Offered Rates represent an estimate of how much it would cost a bank to borrow money from other banks. IBORs are published in several currencies and for a variety of interest periods.

Detailed explanation-5: -1.1 Price. The cash market is where banks lend and borrow funds from each other overnight. The price in this market is the interest rate on these loans. In Australia, this interest rate is called the cash rate.