monetary base

money held by the banks and the public; unit of currency

In economics, the monetary base, or the money base (often called narrow money in the UK) is a term relating to the volume of money in the economy, or money supply. The monetary base comprises only  currency (banknotes and coins) and commercial banks' reserves with the central bank. As such, it is a narrow definition of money supply, consisting of only the most liquid forms of money. Wider definitions of the money supply include the public's bank deposits and are therefore larger in volume and encompass money of a lower liquidity.
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Consists of currency (banknotes and coins) in circulation, the reserves held by counterparties with the Eurosystem and recourse to the Eurosystem's deposit facility. These items are liabilities on the Eurosystem's balance sheet. Reserves can be broken down further into required and excess reserves. In the Eurosystem's minimum reserve system counterparties are obliged to hold required reserves with the NCBs. In addition to these required reserves, credit institutions usually hold only a small amount of voluntary excess reserves with the Eurosystem.

Monetary base
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