In 2008 the TED Spread Reached a High of

question 9

Multiple Choice

In 2008 the TED spread reached a high of

• A) About 150 basis points
• B) About 250 basis points
• C) About 450 basis points
• D) About 550 basis points

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Definitions:

Systematic-Risk Event

An event that affects all securities in the financial market and cannot be mitigated through diversification.

Federal Reserve

The central banking system of the United States, responsible for setting monetary policy, issuing currency, and regulating banks.

Interest Rates

The amount charged by lenders to borrowers for the use of assets, expressed as a percentage of the principal, and typically noted on an annual basis.

Excess Return

The return on an investment over the risk-free rate or over an investment's benchmark.