Essay
In May 2012, the People's Bank of China, which is akin to the Federal Reserve in the United States, lowered its reserve requirements. The tools of the People's Bank are similar to the tools of the Fed.
I. Was the People's Bank of China trying to increase or decrease China's money supply by lowering its reserve requirements?
II. How might the People's Bank of China have used its other tools to achieve the same effect as lowering its reserve requirement?
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I. Lowering the reserve requir...View Answer
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