Title: Econ Lowdown Video Series--Reservation Rate & Arbitrage (Video Q&A)
Course: Alabama Economics Sample Syllabus > Section: Unit 10: The Federal Reserve System & Monetary Policy

Description: This video explains that the interest on reserve balances rate acts as a reservation rate for banks, and explains how arbitrage ensures that it is an effective tool for steering the federal funds rate into the FOMC’s target.

Estimated Completion Time: 10 minutes