Central bank money is the money created by an issuing bank. It develops whenever the central bank lends money to the business banks sold (against securities) or. In the reverse case it is destroyed.

Central bank money consists of the existence of all notes in the circulation and the view assets of the banks with the issuing bank. It consists thus on the one hand of cash (notes and coins) as well as of cash on account. Among the latters the minimum reserve accounts of the business banks e.g. rank with the national central banks of the euro system.

See also

• Clearing bank money

Articles in category "Central bank money"

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