Final answer:
The TED spread measures risk in the banking industry by comparing interest rates on interbank loans and yields on U.S. government debt.
Step-by-step explanation:
The TED spread is a financial indicator that measures the risk in the banking industry. It is the difference between the interest rates on interbank loans (typically represented by the LIBOR) and the yields on short-term U.S. government debt (typically represented by the Treasury bill rate). The TED spread is used as a measure of credit risk and liquidity in the banking system.