c- the U.S. dollar has no intrinsic value
The U.S. dollar is a fiat currency, which means it is not backed by a physical commodity like gold or silver. It derives its value from the trust and confidence of the people using it as a medium of exchange. In the past, many currencies were backed by a specific commodity, such as gold or silver, giving them intrinsic value. However, the U.S. dollar is not redeemable for any specific valuable good like gold or silver.
How does the U.S. dollar differ from money used in the past?
a- the U.S. dollar has intrinsic value
b- the U.S dollar has no intrinsic value but is redeemable for a valuable good
c- the U.S. dollar has no intrinsic value
d- the U.S dollar has intrinsic value and is redeemable for a valuable good
1 answer