# central bank money

- Canonical URL: https://www.gerhardmerk.de/central-bank-money
- Post ID: 604363
- Modified: 2026-08-25T12:54:09+00:00
- Language: en

## Definition

Central bank money is the payment instrument created by a monetary authority and accepted as final settlement within the financial system. It includes cash in circulation and reserve balances that eligible financial institutions hold in accounts at the central bank. Unlike deposits issued by commercial banks, these instruments represent direct claims on the central bank and can be used to complete payments between participating institutions.

## Machine-readable

- Generator: Merk Knowledge 1.1.1