LIBOR:- London Interbank Offered Rate
The London Interbank Offered Rate is a rate of interest which is average of the calculated estimates that are submitted by the leading banks in London. Each and every bank of London suggest some estimates that what and how much it would be charged were it to borrow from other banks of London. The final resulting rate is mostly abbreviated as Libor or LIBOR, or more officially as ICE LIBOR. Previously it was termed as BBA Libor before the duties and responsibility for the administration was handover to Intercontinental Exchange. It also acts as the primary benchmark, along with the Euribor, for a short-term rate of interest all over the world.
The rate of LIBOR is generally calculated for five currencies and seven borrowing periods and its range varies from overnight to one year. The rates are published on each business day by Thomson Reuters.