The spread between the LIBOR and the Treasury-bill rate is called the

A) term spread.
B) T-bill spread.
C) LIBOR spread.
D) TED spread.

TED Spread

The difference between the interest rates on short-term US government debt and interbank loans, indicating credit risk in the general economy.

LIBOR

The London Interbank Offered Rate, representing the interest rate banks charge each other for short-term loans.

Treasury-Bill Rate

The yield or interest rate on U.S. government short-term debt instruments, such as treasury bills, which are considered among the safest investments.