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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 31
Use the following news clip to work Problem.
China Cuts Banks' Reserve Ratios
The People's Bank of China made a long-awaited move to boost lending in the country's slowing economy with the announcement that it would lower the required reserve ratio by 50 basis points from February 24. The cut will bring the ratio down to 20.5 percent for the largest banks.
Explain how lowering the required reserve ratio impacts banks' money creation process.
China Cuts Banks' Reserve Ratios
The People's Bank of China made a long-awaited move to boost lending in the country's slowing economy with the announcement that it would lower the required reserve ratio by 50 basis points from February 24. The cut will bring the ratio down to 20.5 percent for the largest banks.
Explain how lowering the required reserve ratio impacts banks' money creation process.
Explanation
Verified
Verified
Banks money creation ability:
Bank mone...
Macroeconomics 11th Edition by Michael Parkin
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