UPSC Exam  >  UPSC Questions  >   With reference to London Interbank Offered R... Start Learning for Free
With reference to London Interbank Offered Rate (LIBOR), consider the following statements:
It is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.
  • It is calculated using the Waterfall Methodology.
  • It has been subject to manipulation, scandal, and methodological critique.
    Q. Which of the statements given above is/are correct?
    • a)
      3 only
    • b)
      2 only
    • c)
      1 and 3
    • d)
      1, 2 and 3
    Correct answer is option 'D'. Can you explain this answer?
    Most Upvoted Answer
    With reference to London Interbank Offered Rate (LIBOR), consider the...
    LIBOR rose for the fourth straight session, rising roughly 2.5 basis points to
    2.83229%, the highest since November 2008.
    Statements 1, 2 and 3 are correct: LIBOR is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.
    • It serves as a globally accepted key benchmark interest rate that indicates borrowing costs between banks.
    Administered by
    • the Intercontinental Exchange, which asks major global banks how much they would charge other banks for short-term loans.
    • The rate is calculated using the Waterfall Methodology, a standardised, transaction-based, data-driven, layered method.
    • It has been subject to manipulation, scandal, and methodological critique, making it less credible today as a benchmark rate.
    • It is being replaced by the Secured Overnight Financing Rate (SOFR) on June 30, 2023, with phase-out of its use beginning AFTER 2021
    Explore Courses for UPSC exam

    Top Courses for UPSC

    With reference to London Interbank Offered Rate (LIBOR), consider the following statements: It is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. It is calculated using the Waterfall Methodology. It has been subject to manipulation, scandal, and methodological critique. Q. Which of the statements given above is/are correct?a)3 onlyb)2 onlyc)1 and 3d)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?
    Question Description
    With reference to London Interbank Offered Rate (LIBOR), consider the following statements: It is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. It is calculated using the Waterfall Methodology. It has been subject to manipulation, scandal, and methodological critique. Q. Which of the statements given above is/are correct?a)3 onlyb)2 onlyc)1 and 3d)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to London Interbank Offered Rate (LIBOR), consider the following statements: It is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. It is calculated using the Waterfall Methodology. It has been subject to manipulation, scandal, and methodological critique. Q. Which of the statements given above is/are correct?a)3 onlyb)2 onlyc)1 and 3d)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to London Interbank Offered Rate (LIBOR), consider the following statements: It is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. It is calculated using the Waterfall Methodology. It has been subject to manipulation, scandal, and methodological critique. Q. Which of the statements given above is/are correct?a)3 onlyb)2 onlyc)1 and 3d)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?.
    Solutions for With reference to London Interbank Offered Rate (LIBOR), consider the following statements: It is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. It is calculated using the Waterfall Methodology. It has been subject to manipulation, scandal, and methodological critique. Q. Which of the statements given above is/are correct?a)3 onlyb)2 onlyc)1 and 3d)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
    Here you can find the meaning of With reference to London Interbank Offered Rate (LIBOR), consider the following statements: It is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. It is calculated using the Waterfall Methodology. It has been subject to manipulation, scandal, and methodological critique. Q. Which of the statements given above is/are correct?a)3 onlyb)2 onlyc)1 and 3d)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of With reference to London Interbank Offered Rate (LIBOR), consider the following statements: It is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. It is calculated using the Waterfall Methodology. It has been subject to manipulation, scandal, and methodological critique. Q. Which of the statements given above is/are correct?a)3 onlyb)2 onlyc)1 and 3d)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?, a detailed solution for With reference to London Interbank Offered Rate (LIBOR), consider the following statements: It is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. It is calculated using the Waterfall Methodology. It has been subject to manipulation, scandal, and methodological critique. Q. Which of the statements given above is/are correct?a)3 onlyb)2 onlyc)1 and 3d)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of With reference to London Interbank Offered Rate (LIBOR), consider the following statements: It is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. It is calculated using the Waterfall Methodology. It has been subject to manipulation, scandal, and methodological critique. Q. Which of the statements given above is/are correct?a)3 onlyb)2 onlyc)1 and 3d)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice With reference to London Interbank Offered Rate (LIBOR), consider the following statements: It is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans. It is calculated using the Waterfall Methodology. It has been subject to manipulation, scandal, and methodological critique. Q. Which of the statements given above is/are correct?a)3 onlyb)2 onlyc)1 and 3d)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
    Explore Courses for UPSC exam

    Top Courses for UPSC

    Explore Courses
    Signup for Free!
    Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
    10M+ students study on EduRev