June 2007

June 2008

Federal funds rate

5.25%

2.00%

One-month certificates of deposit (CDs)

5.30%

2.50%

Interest-bearing demand deposits

2.30%

1.24%

Currency

0        

0        

CDs minus interest-bearing demand deposits (percentage points)

3.00   

1.26   

CDs minus currency (percentage points)

5.30   

2.50   

Source: Federal Reserve Bank of St. Louis.
Table :

TABLE 15-2 Interest Rates and the Opportunity Cost of Holding Money