How does the US dollar differ from money used in the past?(1 point)

Responses

The US dollar has intrinsic value.
The US dollar has intrinsic value.

The US dollar has no intrinsic value.
The US dollar has no intrinsic value.

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

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

1 answer

The correct response is:

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

Historically, money, such as gold or silver coins, had intrinsic value due to the materials they were made from. In contrast, the modern US dollar is fiat money, meaning it has no intrinsic value but is accepted as legal tender backed by the government. It is not directly redeemable for a physical commodity, but its value is derived from the trust and confidence people have in the government and economy.