In Eurodollar market, increase in demand of Euro dollars results in
A. increase in LIBOR
B. decrease in LIBOR
C. increase in KIBOR
D. decrease in KIBOR
Answer: Option A
Solution (By Examveda Team)
In Eurodollar market, increase in demand of Euro dollars results in increase in LIBOR. Deposits from overnight out to a week are priced based on the fed funds rate. Prices for longer maturities are based on the corresponding London Interbank Offered Rate (LIBOR).This Question Belongs to Management >> International Finance And Treasury
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