What should I look for when buying a bicycle?

I want to buy a basic bicycle in USA to be used on the roads mostly and bikepaths in the city. The objective being - convenience (biking to grocery store rather than walk), fun (biking on the biking path along the river) and exercise. I have used bikes before in my country but never geared. Also, the different names for the bikes here are confusing. Can you please suggest what kind of bike I will need for my purpose and what all should I look for in a decent but cheap bike?

Well basically, a hybrid bike is the one for you. It is a road bike turn touring bike that can handle light off road trails. They are brilliant and are very light in weight.
Alot of companies do these hybrids, but you must know what company to go for. A company that has had good reviews in the past.
In a good decent bike, you must check that the derailleurs are in good tact(they aren't simply built of plastic). Ideally, metal or aliminium derailleurs are the best, but some have half of plastic and metal which are decent.
Secondly, you must also check the clearance between the wheels and the brake pads and the back of the frame. You want the gap of the wheels and the frame to be a few inches, allowing upgraded wheels to still have a big gap without rubbing along the brakes and that they don't obstruct the back of the frame.
Thirdly, check the Stem and headsets of the bike. These are the most important part of the bike and they must be decent. Nowadays, the headsets are cartridge system, which don't allow ease of raising handlebars, but stop the handlebars coming loose etc. Check that it is the cartridge system and that the stem allows the handlebars to move back for a more relaxed approch of riding(only specific on a hybrid bike).
And of course, lastly, check it is comfortable for you. On hybrids, there is no suspension, just in the seat. So make sure there is seat suspension, if not, buy a saddle with suspension. You may go without it, but it makes the journey harder and causes back damage long term due to bounce and landing on a hard seat. Gel saddles are the best.
Hybrids are going for between 拢250-拢400, not sure how much it is in dollars i'm afraid. I just bought one recently for 拢300 which is Very good, it is a Claud Butler(one of the best about). Very reliable and also very light in weight and goes at a fare speed at a comfortable stance.
Happy shopping
Hope i helped!

Osh

Visit a local bike shop and tell them where you want to ride. There are several types of hybrids out now that will suit your needs. The type of bike path will make a difference. If it's paved you can go with the smaller tires and if it's smooth dirt or gravel go with the larger 26x1.95 street path tires.