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Reservation Rate and Arbitrage

This video assignment explains how the interest on reserve balances rate acts as a reservation rate for banks, and that arbitrage is an effective tool for steering the federal funds rate.
Keyword:
Monetary Policy & the Federal Reserve
Disciplines:
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More about this material

Material Type:
Assignment
Date Added to MERLOT:
June 14, 2026
Date Modified in MERLOT:
June 14, 2026
Author:
Unknown (Know the author?)
Submitter:
Scott St. Louis
Primary Audience:
Middle School
Technical Format:
Video
Mobile Compatibility:
Not specified at this time
Language:
English
Cost Involved:
No
Source Code Available:
Unknown
Creative Commons:
Unknown

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