CFA Practice Question

There are 147 practice questions for this study session.

CFA Practice Question

Which spread measure is considered to be an indicator of the risk and liquidity in the money markets?

A. Swap spread
B. Z-spread
C. LIBOR-OIS spread
Correct Answer: C

It is considered to be a strong indicator for the relative stress in the money markets. It can be viewed as indication of banks' perception of the creditworthiness of other financial institutions and the general availability of funds for lending purposes.

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