A Dollar Today Is Worth More Than a Dollar to Be

question 29

Multiple Choice

A dollar today is worth more than a dollar to be received in the future because:

• A) risk of nonpayment in the future.
• B) the dollar can be invested today and earn interest.
• C) inflation will reduce purchasing power of a future dollar.
• D) a dollar today is not worth more than a dollar to be received in the future.

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Definitions:

15 Years Old

Refers to an individual or object that has reached or exists for a duration of fifteen years.

Restrictive Indorsement

An endorsement on a negotiable instrument that limits the way the instrument can be used, such as by specifying a particular payee.

Fiduciary Duty

An obligation to act in the best interest of another party, for instance, the duty a trustee has towards the beneficiaries of the trust.

Indorsee

The person to whom a negotiable instrument (like a check or promissory note) is endorsed or transferred.