In order to study the behavior of cerebral physiological parameters and to further the understanding of the fMRI blood-oxygen-level-dependent (BOLD) effect, we have recorded simultaneously multi-source frequency-domain near-infrared and BOLD fMRI signals during motor functional activation in humans. From the near-infrared data we obtained information on the changes in cerebral blood volume and oxygenation. In order to relate our observations to changes in cerebral blood flow we employed the "balloon" model of cerebral perfusion. Our data showed that the deoxyhemoglobin concentration is the major factor determining the time course of the BOLD signal.