The Idea That Money Has "Time Value" Refers to the Fact

question 130

Multiple Choice

The idea that money has "time value" refers to the fact that

• A)people prefer to receive a given sum of money in the future rather than in the present.
• B)money can be used to purchase the services of labor, as measured in hourly units.
• C)a specific amount of money is more valuable to a person the sooner it is received.
• D)compound interest converts future dollars into a greater amount of current dollars.

---

Definitions:

Antifreeze

A liquid added to the water in a cooling system to lower its freezing point, commonly used in automobile engines.

Cooling System

A system designed to remove heat from an area or machinery, commonly using a fluid or air to transfer heat away.

Algebraic Expression

An algebraic expression is a mathematical phrase that can contain numbers, variables, and operation symbols, but no equality sign.

Ratio

A relationship between two numbers indicating how many times the first number contains the second.