Is it true or false that fiat money consists of items of intrinsic value?

Fiat money is defined as money that has no intrinsic value; it is not backed by a physical commodity like gold or silver. Its value is derived from the trust and confidence that the government and the public have in the currency. Unlike items of intrinsic value, such as precious metals or commodities, fiat money is simply a piece of paper or a digital representation that serves as a medium of exchange, a unit of account, and a store of value because the government maintains it and people accept it as a valid form of payment.

This system of trust creates demand for fiat currency, as it is widely accepted for transactions. Therefore, stating that fiat money consists of items of intrinsic value is inaccurate, making it clear that the correct answer is that it is false. The other choices suggest varying nuances that do not accurately reflect the fundamental nature of fiat money as defined in monetary economics.