An article in the Wall Street Journal in 2017 noted, “China now has one of the highest [required reserve] ratios in the world, economists say, even though many businesses are starved of credit.” a....

An article in the Wall Street Journal in 2017 noted, “China

now has one of the highest [required reserve] ratios in the

world, economists say, even though many businesses are

starved of credit.”

a. What does the article mean by Chinese businesses

being “starved of credit”?

b. Is there a connection between the Chinese central

bank imposing a higher required reserve ratio on

banks and Chinese businesses being starved of credit?

Briefly explain.