Currency issued by the central bank, held by the public or by banks, is known as

1. The central bank alone issues currency. 2. That currency can sit with the public or in bank vaults. 3. It is called **high-powered money**, also reserve money or the monetary base. 4. It earns the name because it is the base on which banks build credit. _Source: syllabus Introductory Macroeconomics, Ch 3 "Money and Banking", section 3.2 DEMAND FOR MONEY AND SUPPLY OF MONEY_