They are created by the Bank of England

They are created by the Bank of England to enable banks to complete transactions with each other.

They are created by the Bank of England to enable banks to complete transactions with each other. They originally enter the system by banks borrowing them from the Central Bank.

They are created by the Bank of England to enable banks to complete transactions with each other. They originally enter the system by banks borrowing them from the Central Banks can borrow from the Bank of England ‘overnight’, at the interest rate set by the Monetary Policy Committee.

They are created by the Bank of England to enable banks to complete transactions with each other. They originally enter the system by banks borrowing them from the Central Banks can borrow from the Bank of England ‘overnight’, at the interest rate set by the Monetary Policy Committee. To do so, banks must have UK government bonds as collateral.

The Bank of England will swap central bank reserves for cash, and cash for central bank reserves, with banks. Banks need to hold cash in order to meet demands on it from depositors – ie, to pay debts that they owe.

They can create deposits in accounts of customers They cannot create reserve bank deposits or cash But they need reserve bank deposits or cash whenever their customers want to buy things