Question

During the late 1970s, prices quoted in terms of the Israeli currency, the shekel, rose so fast that grocery stores listed their prices in terms of the U.S. dollar and provided customers with dollar-shekel conversion tables that they updated daily. Although people continued to buy goods and services and make loans using shekels, many Israeli citizens converted shekels to dollars to avoid a reduction in their wealth due to inflation. In what way did the U.S. dollar function as money in Israel during this period?

Answer 1

Answer:

as a unit of accounting                                          

Explanation:

              The United States dollar was used as a unit of accounting in Israel during the late 1970s. During this period, the value of shekel rose very high. Shekel is the currency of  Israel.

              Though the business around the world was done in terms of United States dollar, but since the Israeli Shekel rose its value in terms of US dollar, the prices in the grocery stores have a dollar-shekel conversion tables.

              The United States dollar was taken as a unit of accounting in all the business transactions, many Israeli people converted shekel to dollar and avoided reduction in wealth because of the inflation.

Hence the answer is -

as a unit of accounting