The spread between the LIBOR and the Treasury-bill rate is called the ________.
A)term spread
B)T-bill spread
C)LIBOR spread
D)TED spread
E)none of the above

Question

Quizplus · Accepted Answer

The spread between the LIBOR (London Interbank Offered Rate) and the Treasury-bill rate is called the TED (Treasury-Eurodollar) spread, which is commonly used as an indicator of perceived credit risk in the overall economy.

The Spread Between the LIBOR and the Treasury-Bill Rate Is