The primary form of money is central bank money which consists of banknotes issued by a central bank and deposits in central bank current accounts. In Japan, the balance of central bank money is 122 trillion yen in March 2011. In addition, bank deposits, which are easily convertible to central bank money, also function as money.
The outstanding balance of bank deposits is 1,024 trillion yen. The outstanding balance of Japanese government securities is 865 trillion yen. A government uses the securities as a means of funding; a central bank uses them as the instrument of monetary control; and investors including private financial institutions use them as one of the primary financial assets for investment.