The Rate of Time Preference Is Positive

question 48

Multiple Choice

The rate of time preference is positive

• A)only when interest rates are positive
• B)because interest rates are positive
• C)only when people save
• D)because people save
• E)because people prefer goods now to the same goods later

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Definitions:

Total Assets

The sum of all assets, both current and noncurrent, owned by a company, representing the resources it has at its disposal.

Stockholders' Equity

Represents the ownership interest of shareholders in a corporation, calculated as total assets minus total liabilities. Also known as shareholder's equity or owner's equity.

Redemption Value

Redemption value is the amount payable to a security holder upon its maturity or the amount to redeem a bond before its maturity.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock that must be paid out before any dividends can be issued on common stock.