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Asked by V?n Linh Nguy?n on May 26, 2024

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The rate of interest on short-term loans among financial institutions is ________.

A) bankers' acceptances
B) brokers' calls
C) federal funds rate
D) LIBOR

LIBOR

The London Interbank Offered Rate, previously a benchmark interest rate at which major global banks lend to one another.

Bankers' Acceptances

Short-term debt instruments issued by a company that is guaranteed by a commercial bank, commonly used in international trade.

Brokers' Calls

The interest rate charged by banks on loans extended to brokerage firms for the purpose of funding clients' margin accounts.

  • Identify and calculate interest rates in various financial contexts.
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WM
wanda mitchellMay 27, 2024
Final Answer :
C
Explanation :
The federal funds rate is the rate at which financial institutions lend to each other overnight to meet their reserve requirements with the Federal Reserve. This is a key benchmark for short-term lending rates among financial institutions. Bankers' acceptances, brokers' calls, and LIBOR are all other forms of short-term borrowing or lending, but they are not specifically tied to interbank lending rates.

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