In Questions below, you will work with data relevant to the Fed's discount rate window operations. The most relevant data sources here will likely be: https://www.newyorkfed.org/markets/reference-rates https://www.cmegroup.com/markets/interest-rates/stirs/30-day-federal-fund.quotes.html (Quotes) https://www.cmegroup.com/markets/interest-rates/stirs/30-day-federal-fund.html (Overview; please ensure that you review the section titled "Explore this product in depth" to understand how to read the quotes and how to convert them into a federal funds rate expressed in percentage)

Q1) Is it generally cheaper to borrow at the discount window than from the federal funds market?

Yes, it is generally cheaper to borrow at the discount window. No, it is generally cheaper to borrow from the federal funds market.

Q2) Would you rather borrow at the federal funds market than from the discount window if your bank is in the 99th percentile of the distribution (i.e., considered to be among the riskiest counterparties in the federal funds market)?

Please consider the cost of funds (interest rate) to be your primary concern when making this decision and answering this question.

Yes, I would prefer to borrow at the federal funds market. No, I would prefer to borrow at the discount rate window.

Q3) What was the SOFR rate on January 31, 2022?

Q4) Was the volume of SOFR transactions larger than the federal funds transaction volume on January 31, 2022?

Yes. No.

Q5) According to Federal Funds Futures, what federal funds rate (in percent) do market participants expect in July 2023? Note: Please enter your answer as a percentage rounded to the nearest whole number; and do not include the percentage (%) sign. For example, you would round 5.75% up to 6% and enter it as 6.