Monetary Base
The sum of the currency in circulation and the reserves of commercial banks at the central bank.
For example, suppose country A has 500 million currency units circulating in the public and its central bank has 20 billion currency units in reserve as part of deposits from many commercial banks. In this case, the monetary base for country A is 20.5 billion currency units.
For example, suppose country A has 500 million currency units circulating in the public and its central bank has 20 billion currency units in reserve as part of deposits from many commercial banks. In this case, the monetary base for country A is 20.5 billion currency units.