Is it true that the rate at which BANKS lend & borrow money from each other & charge LIBOR (it is bank to bank interest rate)
LIBOR is a floating interest rate that keeps changing on a day-to-day basis?
Can we be asked any arithmetic on floating rate?
Ask the Tutor ACCA FM
LIBOR
5y ago#1What you have written is true (and the interest charged to companies when they borrow is based on LIBOR but it a bit higher depending on how risky the bank thinks that the company they are lending to is.)
You are not asked for calculations on LIBOR in Paper FM.
Sign in to reply to this topic.