Question

Explain the X and Y of this graph, and what does it mean and why?

PRED Interest Rates, Discount Rate for Effective Federal Funds Rate 12 རིག : ་ ,་ :: per Annum Percent Serca RE ources: Board

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Answer #1

The follwoing graph shows how the effective fed funds rate and the interest rates have moved from Jan 2018 to Jan 2020.

The X- Axis represents the time priod from Jan 2018 to Jan 2020

The Y- Axis represents the interest rate.

During this period the effective fed funds rate ave moved from 1.3% to 1.55%

The graph also shows how the interest rate has moved during this period

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