LIBOR refers to London Interbank Bank Offering Rate. It's a rate at which banks borrow and lend funds from other banks. LIBOR rate is usually determined by market; the demand and supply of money, but it is adjusted on a daily basis due to the demand and supply of money. This rate (LIBOR rate) isa determinant rate for all other borrowing and lending institutions all over the globe. Lender's charge some premium amount over LIBOR rate for lending funds to clients.

Would LIBOR be more similar to the U.S. Federal Reserve "Fed Funds Rate" or "Discount Rate"?

What is the difference between the two?