As of 2008, how many member banks were involved in LIBOR fixing?

The correct choice reflects that as of 2008, there were 223 member banks involved in the London Interbank Offered Rate (LIBOR) fixing process. LIBOR is a benchmark interest rate used globally for various financial instruments, and its determination relies on submissions from a panel of banks that contribute rates at which they could borrow funds from other banks.

The number of 223 indicates a broad base of participation among major financial institutions, enhancing the credibility and reliability of the LIBOR rates. This participation is vital because it represents a consensus of borrowing costs across the banking industry, thus providing a key reference point for many loans and derivatives transactions.

Understanding the significance of the number of participating banks is essential in grasping how LIBOR functions as a market-driven interest rate, as the rate reflects not just one bank's opinion but a collective assessment from numerous institutions about lending rates in the interbank market.