Central Banks
an electronic money that is issued by central banks.
What is a central bank digital currency?
This is an advantage for borrowers/debtors, but a disadvantage for savers and wage earners
What is inflation?
currency that a government has declared to be legal tender. It has no intrinsic value and is not backed by physical commodities, making it widely accepted for transactions.
What is fiat money?
Economic system used before the invention of Money. Under this system, goods & services were traded directly- with no being used at any point in a transaction.
the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
What is credit?
Communicating future policy intentions to shape public expectations
What is Forward Guidance?
When the money supply increases at a rate that leads to economic instability- causing the price of good and services to skyrocket.
What is hyperinflation?
physical goods used as a medium of exchange. Examples include gold bars and silver coins. It retains intrinsic value, making it a trusted form of currency throughout history.
What is Commodity Money?
This type of money was the first type of money used following the end of the bartering system.
What is Commodity Money?
something, typically money, that is owed or due
what is debt?
When a central bank sets a specific inflation rate that they wish to maintain.
What is inflation targeting?
When the price of goods/services decrease as a result of decreased demand or supply of money
What is deflation?
serves as a claim on a commodity, backed by a physical asset. Examples include gold certificates and redeemable tokens, which facilitate easier transactions without the need for physical commodities.
What is representative money (aka hard money)?
The introduction of this money allowed for increased trust regarding it's authenticity which lead to a revolution of trade and commerce
What is Metal Coinage Money?
a medium of exchange used to buy/sell goods and services.
What is money?
the actions taken by a nation's central bank to control the money supply and influence economic conditions.
What is monetary policy?
Beneficiaries of inflation.
What are debtors?
currency that exists electronically. It includes cryptocurrencies like Bitcoin and facilitates online transactions and investments, enabling users to transact securely and efficiently.
What is digital money?
With the invention of this type of money near the 7th century, creation, storage and transportation of money became easier- allowing for increased trade and commerce.
This money also paved the way for fiat currencies to exist.
What is Paper Money?
the activity of buying and selling, especially on a large scale.
What is Commerce?
This action taken by central banks leads to inflation.
What is money printing?
Non-beneficiaries of inflation
What are savers and wager earners?
currencies designed to enhance local economies by promoting spending within a community. They encourage social connections and support local businesses while creating unique financial ecosystems.
What are local currencies?
This is a currency that is backed by (always able to be exchanged for) some sort of commodity, whether is gold, silver, petroleum, etc...
What is Representative money (aka hard money)?
a raw material or primary agricultural product that can be bought and sold, such as copper or coffee.
a useful or valuable thing, such as water or time.
What is a commodity?