does the change in reserve requirement affects monetary base? If no, why?

Question

for example, recent move by chinese central bank, who had increase reserve requirement; thank u.

Answer 1

A change in legislation regarding government reserves would affect the reserve held by the federal bank of the given country, and this can be done 1 of 2 ways:

extract the required monetary base from the volume of money in general society, thereby reducing the amount of money in circulation increasing the value of each unit in circulation; or

Create the required monetary increase, destined for the reserve bank, directly from the press, thereby maintaining the volume of units in circulation and thereby maintaining the value of each unit. This option is also used to replace units in circulation with new ones, so often when a set of units is created the press will create the required increase as part of the print, to be more efficient, and send the units to their respective banks. This is the option that is almost always used, except in emergency situations such as a sudden rise in inflation due to foreign currency trade or war or some other outside influence.

Answer 2

it does effect the monetary base dear...when reserve requirements is increased by the central bank of any country the banks have to keep more funds as reserves thus resulting in less loanable funds,reducing the money circulation in the economy.

Answer 3

Yes. An increase in the reserve requirement decreases the money supply, because the bank has to keep more cash on hand to meet reserves. This results in less money loaned out., decreasing money supply.