In Banking, the Spread Refers to the Difference Between the

question 77

Multiple Choice

In banking, the spread refers to the difference between the

• A)interest rate on long-term bonds and the interest rate on short-term bonds.
• B)interest rate on car loans and the interest rate on home mortgages.
• C)return earned from lending and the cost of the needed funds.
• D)bid and asked prices on a bond.

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Definitions:

Negative Slope

A feature of a line on a graph that indicates a decrease in the dependent variable as the independent variable increases.

Production Possibilities

The different quantities of goods and services that an economy can produce given its available resources and technology, as represented by a production possibility curve.

Better Technology

Improvements or advancements in technology that increase efficiency or productivity.

Concave Production Possibilities Curve

A graphical representation indicating increasing opportunity costs as more of one good is produced, resulting in a bowed-out shape.