A spread is the difference between the deposit and loan interest rates. Option A is incorrect because it refers to an average, which is not the same as a spread. Option B is incorrect because it only applies to Eurobanks and is not a general definition of a spread. Option D is incorrect because regulators may use spreads as a tool, but it is not the definition of what a spread is.

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What Is a Spread

Question 52

Multiple Choice

What is a spread?

A) The average of the deposit and loan interest rates.
B) The quarterly increase of earnings for Eurobanks.
C) The difference between the deposit and loan interest rates.
D) The tool used by regulators to monitor deposit and loan interest rates.

Correct Answer: