Title: Econ Lowdown Video Series--Two Important Interest Rates in Monetary Policy Implementation (Video Q&A)
Course: Alabama Economics Sample Syllabus > Section: Unit 10: The Federal Reserve System & Monetary Policy

Description: This video explains how the Fed uses two important interest rates to implement monetary policy. When banks lend funds to other banks from these accounts, they earn the federal funds rate. When banks hold reserves at the Fed, they earn the interest on reserve balances rate. The Fed uses interest on reserve balances rate to steer the federal funds rate.

Estimated Completion Time: 10 minutes