Which country has used adjustments to the required reserve ratio as a primary tool of monetary policy?
A) United States
B) China
C) Mexico
D) India

Question

Quizplus · Accepted Answer

China has historically used adjustments to the required reserve ratio as a primary tool of monetary policy, with the aim of maintaining stability in its financial system and controlling inflation. The People's Bank of China (PBOC) has frequently adjusted the reserve requirements for banks in order to either increase or decrease lending and liquidity in the economy. While other countries also use reserve requirements as a tool of monetary policy, China's use of this tool has been particularly prominent and effective.

Which Country Has Used Adjustments to the Required Reserve Ratio