How does the U.S. dollar differ from money used in the past?(1 point)
Responses
The U.S. dollar has intrinsic value.
The U.S. dollar has intrinsic value.
The U.S. dollar has no intrinsic value.
The U.S. dollar has no intrinsic value.
The U.S. dollar has intrinsic value and is redeemable for a valuable good.
The U.S. dollar has intrinsic value and 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 but is redeemable for a valuable good.
The correct response is: The U.S. dollar has no intrinsic value.
The answer to this question is: The U.S. dollar has no intrinsic value but is redeemable for a valuable good.
To understand this, let's break it down:
1. Intrinsic value: In the past, many forms of money, such as gold or silver coins, had intrinsic value. This means that the metal itself had value, even if it wasn't used as a currency. For example, gold could be used for jewelry or industry.
2. U.S. dollar: The U.S. dollar, however, does not have intrinsic value. It is a fiat currency, which means its value is not based on a physical asset. Instead, the value of the U.S. dollar is determined by the faith and trust people have in the U.S. government and economy.
3. Redeemable for a valuable good: While the U.S. dollar itself may not have intrinsic value, it is widely accepted as a form of payment in the U.S. and internationally. This means that you can use U.S. dollars to purchase goods and services, which have value.
So, to summarize, the U.S. dollar does not have intrinsic value like some forms of money used in the past, but it is still valuable and can be used to acquire valuable goods and services.