GO
Loading...

Libor: CNBC Explains

If you’ve read financial news in the last few years, you’ve come across the term Libor. Libor is the London InterBank Offered Rate, a key interest rate used by banks for short-term lending with other banks. For those who are fuzzy on the topic, Salman Khan of the Khan Academy explains what Libor is and how it is used.

From this video, you’ll understand:

  • How Libor is calculated
  • How this differs from the Federal Funds Rate
  • Why banks use Libor

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Latest Special Reports

  • Tips on the best-performing portfolio strategies and global market trends that can help you become a smarter investor.

  • Financial Advisor

    CNBC looks at how technology, product development, succession plans and client relations impact financial advisory firms.

  • Advisor-centric content with guest columns covering practice management, investment strategies and marketing/social media.