If the currency drain ratio in China is 10 percent of deposits, by how much did the
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If the currency drain ratio in China is 10 percent of deposits, by how much did the money multiplier change when the required reserve ratio changed as described in the news clip?
The People’s Bank of China lowered the required reserve ratio from 17.5 percent to 17 percent, noting that it remained much higher than in other countries.
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The money multiplier is 1 C D R D CD where CD is the currency drain rat...View the full answer
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