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ICMA FMFQ Exam - Topic 5 Question 98 Discussion

Which of the following best describes LIBOR?
B) The average rate at which wholesale banks are offering one another money at fixing time
A) The average rate at which wholesale bank deposits have taken place over the past 24 hours (since the last LIBOR fix)
C) The highest rate at which wholesale banks are offering one another money at fixing time
D) The average rate at which wholesale banks have offered money to their customers over the past 24 hours (since the last LIBOR fix)

ICMA FMFQ Exam - Topic 5 Question 98 Discussion

Actual exam question for ICMA's FMFQ exam
Question #: 98
Topic #: 5
[All FMFQ Questions]

Which of the following best describes LIBOR?

Show Suggested Answer Hide Answer
Suggested Answer: B

by Minna at Jul 02, 2026, 01:54 PM

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Reynalda
11 hours ago
I think LIBOR is about interbank lending rates.
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Linwood
6 days ago
B is the best description. It’s all about interbank rates.
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Albina
11 days ago
I feel confident about B too. It’s straightforward.
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Carey
16 days ago
B is the standard definition. Can't go wrong with that!
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Fletcher
21 days ago
I chose A initially, but B clarifies it better.
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Wai
26 days ago
Definitely B. The fixing time is key here.
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Zena
1 month ago
I was torn between A and B, but B feels more accurate.
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King
1 month ago
Agreed, B is the right choice. It's about banks lending to each other.
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Glory
1 month ago
I think it's B. It makes the most sense.
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Ena
2 months ago
D is totally off, it’s not about customer rates.
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Jerilyn
2 months ago
Wait, is LIBOR really just an average? Seems too simple!
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Theola
2 months ago
C sounds wrong, LIBOR isn't about the highest rates.
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Anisha
2 months ago
I thought it was A at first, but B makes more sense.
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Lezlie
2 months ago
It's definitely B, that's the standard definition.
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Polly
2 months ago
I definitely recall that LIBOR is not about customer rates, so I think D is definitely wrong. But I’m still torn between A and B.
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Argelia
3 months ago
I’m a bit confused about the difference between the average and the highest rates. I feel like I might mix up A and B.
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Lonna
3 months ago
I remember practicing a question similar to this, and I think it was about the average rate at fixing time, which might point to option B.
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Shawna
3 months ago
I think LIBOR is related to the rates banks offer each other, but I’m not sure if it’s the average or the highest rate.
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