Define LIBOR. What is LIBOR? If it is an anacronym, what do the letters stand for?

LIBOR is an unsecured interest rate index used to determine rates at which smaller banks borrow funds from larger banks. LIBOR is an acronym and stands for London Interbank Offered Rate which is a rate charged in the London wholesale money market. Banks around the world use that rate as an index. LIBOR is subject to change on a daily basis.

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