NEWS WIRE: RESERVE REQUIREMENTS China Cuts Reserve Requirements Beijing—China's central bank reduced the amount of reserves commercial banks are required to hold, freeing up money for lending in the latest easing measure to shore up the world's second-largest economy. The People's Bank of China's percentage point cut in the reserve requirement lowers the reserve-requirement ratio, or RRR, to 11.5 percent for large banks. The move frees up about US$79 billion in additional funds that banks can now lend. Source: News accounts of March 2020. Instructions: Round your responses to one decimal place. What was the money multiplier in China before the change in reserve requirements? after the change in reserve requirements?
What was the money multiplier in China
before the change in reserve requirements?