Question

the currency issued by central bank can be held by public or commercial bank it is called​

Answer 1

Answer:

From the point of view of money supply, we need to focus on its function of issuing currency. This currency issued by the central bank can be held by the public or by the commercial banks, and is called the 'high-powered money' or 'reserve money' or 'monetary base' as it acts as a basis for credit creation.