GLOBAL PAYMENTS KNOWLEDGEISO 20022 / SWIFT / SEPA / MT / MX
PAYMENTSSIGNAL

The interactive academy for the standards, messages, and rails that move money.

PROGRESS
DRILL · FORMS OF MONEY: CENTRAL VS COMMERCIAL BANK MONEY

The words behind Forms of money: central vs commercial bank money

Read the plain-language definition, then name the term it describes.

Money that is a claim on the central bank — banknotes and the balances banks hold in accounts at the central bank. No commercial credit risk.

Step 1 of 4

THE DRILL AS TEXT

  1. Money that is a claim on the central bank — banknotes and the balances banks hold in accounts at the central bank. No commercial credit risk.
    • Central bank money
  2. Money that is a claim on a commercial bank — the balances in ordinary bank accounts. Most everyday payments move this kind of money.
    • Commercial bank money
  3. The asset actually transferred to discharge an obligation between parties in a payment or securities system — typically central or commercial bank money.
    • Settlement asset
  4. The property that one unit of money is worth the same wherever it is held — a euro at one bank equals a euro at another, and equals cash.
    • Singleness of money

This drill is built from Forms of money: central vs commercial bank money — it rearranges material written and sourced on that page rather than asserting anything new, so every claim in it is checkable there.