The unit-of-account function of money means that money is used:

Select one:

a.

as a consistent means of measuring the value of things.

b.

as the common denominator of future payments.

c.

to pay for goods and services.

d.

to accumulate purchasing power.

Money that some authority has declared legal tender is called:

Select one:

a.

fiat money.

b.

currency.

c.

convertible paper money.

d.

commodity money.

Exhibit: Table 9-2 Components of the Money Supply Year 1 Year 2 $ billion 5 billion Currency 50 100 Savings deposits 150 200 Checkable deposits and traveler's checks 250 450 Small-denomination time deposits 100 150 Treasury Bonds 400 500