What does LIBOR stand for?

LIBOR stands for London Interbank Offered Rate. This term specifically refers to an interest rate at which major global banks lend to one another in the London interbank market. LIBOR serves as a global benchmark for short-term interest rates, and it is utilized in a wide range of financial products, including loans, mortgages, and derivatives. The rate is calculated based on submissions from a panel of banks and is an important indicator of the health of the banking system and the cost of borrowing between institutions. The correct answer reflects the internationally recognized term and its significance in the financial markets.