Monetary Base or money base is the portion of currency held by a commercial bank’s deposit with its central banks reserves and the total currency circulating in the public. So if the central bank of a country held 6 billion units of currency in reserve and the volume of currency circulating in a country was at 700 million then the monetary base for the country would be 6.7 billion units of currency.
What is Monetary Base?
Monetary Base is the portion of currency held by a commercial bank's deposit with its central banks reserves.
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