Money in America Money is used to
buy goods or services and (1) ______ debts.
(1)_________ In America, money supply consists of (2) ______ (paper
(2)_________ money),
coins, and demand deposits [(3) ______].
(3)_________ In a modern credit economy, money must
possess two most important attributes: acceptability and (4) ______. It
also (4)_________ has two legal attributes: legal tender and
(5) ______ (5)_________ Money performs
four main functions: a. standard of value; b. (6)
______;
(6)_________ c. store of value; d. standard of
deferred payment. There are three partially conflicting theories
of value for explaining the (7) ______ in the value of American money,
(7)_________ namely the commodity, quantity and income
theories. Coins are credit money or (8) ______ money
whereas (8)_________ paper money
consists of Federal Reserve notes. Demand deposits are supplied depending on
a bank’s total (9) ______ (9)_________
reserves. The Federal Reserve, or Fed, as a central bank,
(10) ______ and (10)_________ controls the
nation’s money supply and credit.