Question 5:

Do the federal funds rate (EFFR) and the secured overnight financing rate (SOFR) generally move together fairly closely? You do not have to limit yourself to analyzing only the period of January 1, 2024 through February 2, 2024; you may want to analyze the period for the last 5 years or so.

Note:To answer this question, you may want to plot the behavior of both EFFR and SOFR series using the tools provided byFREDLinks to an external site.. To include both series on the same chart, please follow these steps:

- Generate a chart for one of the series (for example, search for "EFFR" athttps://fred.stlouisfed.org/Links to an external site.)

- Click onEdit Graphbutton, chooseAdd Linetab, enter the name of the second series (in this case, "Secured Overnight Financing Rate"), choose the best match, and clickAdd data series.

- Close the editing menu and play with the dates to examine the behavior of the series. When you move the mouse across the lines in the graph, the chart will display the values for both series as of both dates.

Pick one:

a. Yes

b. No