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Benchmark interest rate definitionQuestion What is the definition of "benchmark interest rate"?
Answer A benchmark interest rate is a standard rate against which something is measured. Three example are: the Federal Funds Rate, set by the Federal Reserve Board; the prime rate, which is set by banks; LIBOR, which is the London Interbank Offer Rate.
Benchmark interest rates are used to calculate adjustable rate mortgages or other variable loans. Search again for the definitions of these and other specific financial terms. 
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