You use U.S. currency to pay the owner of a restaurant for a delicious meal. The currency

Question

a.

has intrinsic value. The exchange is an example of barter.
b.

has no intrinsic value. The exchange is not an example of barter.
c.

has intrinsic value. The exchange is not an example of barter.
d.

has no intrinsic value. The exchange is an example of barter.

Answer 1

The correct answer is:

b. has no intrinsic value. The exchange is not an example of barter.

U.S. currency is considered fiat money, meaning it does not have intrinsic value (it's not backed by a physical commodity) but is accepted as money because the government maintains it and people have faith in its value. The exchange for a meal is not barter because money (currency) is being used as a medium of exchange rather than directly trading goods or services for other goods or services.