GENERAL KNOWLEDGE

Detailed explanation-1: -The average-often referred to in the singular even though there are 150 rates-is called the London interbank offered rate (LIBOR). It is one of the best known and most important interest rates in the world.

Detailed explanation-2: -The London Interbank Offered Rate (LIBOR) is a measure of the average rate at which banks are willing to borrow wholesale unsecured funds. It is administered by ICE Benchmark Administration. It is calculated based on submissions from selected panel banks and is published in 5 currencies and a range of tenors.

Detailed explanation-3: -The London Inter-Bank Offered Rate (Libor) is an interest rate average calculated from estimates submitted by the leading banks in London. Each bank estimates what it would be charged were it to borrow from other banks. It is the primary benchmark, along with the Euribor, for short-term interest rates around the world.

Detailed explanation-4: -Over the last decade, Libor has been burdened by scandals and crises. Effective January 2022, Libor will no longer be used to issue new loans in the U.S. It is being replaced by the Secured Overnight Financing Rate (SOFR), which many experts consider a more accurate and more secure pricing benchmark.