Go to the Federal Reserve Bank of St. Louis website at www.fred.stlouisfed.org/series/CD3NRNJ and find the latest information available on three-month CD rates versus the prime rate using the following steps. To get monthly CD rates, search for “National Rate on Non-Jumbo Deposits (less than $100,000): 3 Month CD”. This will download data to your computer that will contain the most recent information on three-month CD rates. To get the Prime Rate, Search for ‘Prime.” Click on “Bank Prime Loan Rate.”

Questions 1 How have prime rates and CD rates changed since 2020, as reported in Figure 23–1?

2 Calculate the spread between the prime rate and CD rate since 2020. How has the spread changed over the last several years?

AppendixLO1