7. In August 2015, the Chinese central bank decided to reduce Chinas required reserve-deposit ratio from 18.5

Question:

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)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles Of Macroeconomics

ISBN: 9781264250356

8th Edition

Authors: Robert Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz

Question Posted: