7. In August 2015, the Chinese central bank decided to reduce Chinas required reserve-deposit ratio from 18.5
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7. In August 2015, the Chinese central bank decided to reduce China’s required reserve-deposit ratio from 18.5 percent to 18 percent. Assuming no change in the amount of cash held by the Chinese public, that commercial banks lend all their excess reserves, and that bank reserves was a constant 4,329 billion yuan both before and after the change, compute the maximum change in Chinese banks deposits as a consequence of the change in the reserve-deposit. (LO3)
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Related Book For
Principles Of Macroeconomics
ISBN: 9781264250356
8th Edition
Authors: Robert Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz
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