LIBOR (London Interbank Offered Rate) is a specific type of interest rate that serves as a benchmark for various financial transactions. While it falls within the broader category of interest rates, LIBOR is distinct in its nature. It represents the average interest rate at which major global banks would lend to one another in the international interbank market for short-term loans. LIBOR plays a significant role in influencing the borrowing costs among financial institutions and impacts a wide range of financial products, including loans, derivatives, and credit cards.