The TED spread is the difference between the interest rate paid on _____ and the interest rate paid on _____.
A) three-month U.S. certificates of deposit; three-month eurodollar loans
B) overnight interbank loans in London; overnight interbank loans in the United States
C) four-week Treasury bills; overnight federal funds
D) three-month eurodollar interbank loans; three-month Treasury bills

Question

Quizplus · Accepted Answer

The TED spread is the difference between the interest rate on three-month eurodollar interbank loans (which are essentially loans between banks outside the United States) and the interest rate on three-month Treasury bills (which are issued by the United States government).

The TED Spread Is the Difference Between the Interest Rate