How to move the cursor word by word in the OS X Terminal

Question

I know the combination Ctrl+A to jump to the beginning of the current command, and Ctrl+E to jump to the end.

But is there any way to jump word by word, like Alt+←/→ in Cocoa applications does?

Answer 1

Out of the box you can use the quite bizarre Esc+F to move to the beginning of the next word and Esc+B to move to the beginning of the current word.