How does the U.S. dollar differ from money used in the past?(1 point)

Question

Responses

The U.S. dollar has no intrinsic value but is redeemable for a valuable good.
The U.S. dollar has no intrinsic value but is redeemable for a valuable good.

The U.S. dollar has no intrinsic value.
The U.S. dollar has no intrinsic value.

The U.S. dollar has intrinsic value.
The U.S. dollar has intrinsic value.

The U.S. dollar has intrinsic value and is redeemable for a valuable good.

Answer 1

The correct response is: The U.S. dollar has no intrinsic value.

This reflects the fact that modern U.S. currency is fiat money, meaning it has value not because of any physical backing (like gold or silver), but because the government maintains it and people have faith in its value. In the past, many forms of money had intrinsic value, such as coins made of precious metals.