Question

Personal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners still exchange goods and services. Until 2003, the year in which the U.S. government banned smoking in federal penitentiaries, cigarettes were the preferred medium of exchange among prisoners. One important difference between using cigarettes and using dollars as money is that__________.

Answer 1

Using cigarettes have intrinsic value.

Step-by-step explanation:

This is known as commodity money. An item tha has intrinsic value if it's valuable outside of its use as currency. Cigarettes are used as a medium of exchange, of money or currency, by prisioners but it has value outside of that use which is that cigarettes can be smoked.