Question

"The acronym LIBOR represents a:

A) Federal agency
B) Possible ARM index
-C) Federal law
D) State law"

Answer 1

LIBOR represents a Possible ARM index as a benchmark interest rate used by global banks for loans with adjustable interest rates.

Step-by-step explanation:

The acronym LIBOR stands for the London Interbank Offered Rate and represents a Possible ARM index. LIBOR is a benchmark interest rate used by global banks when lending to each other, especially for loans with adjustable interest rates, such as Adjustable Rate Mortgages (ARMs). It is an important reference rate that reflects the average interest rate at which banks can borrow funds in the London interbank market.