The TED Spread Is a Useful Indicator of the Perceived

Multiple Choice

The TED spread is a useful indicator of the perceived lending risk in the financial markets because:

A) the measure rises when the risk of bank insolvency falls.
B) the measure becomes negative when the risk of bank insolvency rises.
C) the measure falls when the risk of bank insolvency rises.
D) the measure becomes negative when the risk of bank insolvency falls.
E) the measure rises when the risk of bank insolvency rises.