0
Libor is London Inter-bank Offer Rate and Libid is London Inter-bank Bid Rate. Libor is always higher than Libid. If banks use Libor to lend (ask) and Libid to buy (bid) how come that while one bank expects to get a higher rate while lending hope to get a lower rate while borrowing? While one bank buys the other sells; while it is a bid rate to one it is offer rate to the other! How is it that this market function? Is it because the bid rate is expected to decrease within a day and the offer rate expected to increase simultaneously to keep-up with the margins in the inter-bank market?
Still curious? Ask our experts.
Chat with our AI personalities
Ezra
Devin
TaigaAdd your answer:
Earn +20 pts
Is LIBOR normally higher or lower than the US prime interest rate?
It is normally higher than the US prime interest rate.
12 percent per annum and 2 percent above libor which is favorable?
"2% above Libor" would mean a percentage that is 2 percent more than the Libor rate. You would have to get the current rates (there are different rates for different conditions), add 2%, and then compare.
What is higher 8.8 or 11?
11 is higher than 8.8 is.
What is efficiency always less than?
It is always less than 1 or 100%.It is always less than 1 or 100%.It is always less than 1 or 100%.It is always less than 1 or 100%.
What is the difference from even numbers and odd numbers?
Odd numbers are always higher than even numbers . And even numbers are easier to add than odd numbers for some people .
