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Hello
I watched all lectures related to exchange rates but I want to know about libor ..where can I read the basics about it ..how it functions ..in text book I don’t find ..I have bpp text book and revision kit ..could you please simplify what is the interpretation behind using the libor rate ..is it just for floating rate ..are these told in question
LIBOR is the interest rate that major banks charge each other for short term loans. They use it as a basis for the interest rates that they then charge customers for borrowing, or pay customers for deposits (the charge a bit more than LIBOR and offer a bit less than LIBOR).
For the exam, that is all you need to know.
If you want more out of interest, then have a search on Google and you will find a lot.
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