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The central bank has the following figures: Amount of sight deposits: VND 800 billion The amount of cash in circulation: 1200 billion Legal reserves: 40

The central bank has the following figures: Amount of sight deposits: VND 800 billion The amount of cash in circulation: 1200 billion Legal reserves: 40 billion 


a. if the central banks change the required reserve ratio to 2%. How is the bank’s transaction affected? 


b. on the first date, if the central bank wants to reduce the money supply to 1600 billion by professional tools on OMO, how should the central bank regulate to get this target?

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