12 terms

Chapter 4: The Money Morph


Terms in this set (...)

central bank
also known as a reserve bank or monetary authority; the institution that manages a nation's currency, money supply, and interest rates.
European Central Bank (ECB)
"ECB"; the central bank for the Eurozone; the ECB administers the monetary policy of the Eurozone and regulates the euro supply.
monetary policy
actions and decisions made by a central or reserve bank designed to maintain a healthy economy and commercial growth.
legal tender
medium of exchange recognized by the government of a country as national currency.
intrinsic value
value of the essence of a thing, such as the value of the metal within the coin.
gold standard
monetary system where a country's currency or paper money is backed by and redeemable in gold, and value tied to gold.
fiat money
currency that the government of a country has declared to be legal tender, not backed by a physical commodity.
electronic money
money held in a computer within the banking system and not in any physical form.
virtual currency
also called VC; an electronically created peer-to-peer medium of exchange, unregulated by any government.
a popular virtual currency.
electronic funds transfer
EFT; the electronic exchange and transfer of money from one account to another.
quantitative easing
QE; a reserve or central bank policy of increasing the money supply to stimulate the economy