The Time Value of Money Means

question 70

Multiple Choice

The time value of money means:

• A) A dollar received today will be worth more than a dollar received in the future
• B) A dollar received today will be worth less than a dollar received in the future
• C) Ignoring the profitability of a capital investment
• D) The more you invest, the smaller your return is

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Definitions:

Price

The figure set as the cost or value of a transaction for a product or service in the marketplace.

Apples

A common fruit cultivated worldwide, also used metaphorically to represent simple examples in economic models.

Demand Function

A mathematical expression that specifies the quantity of a good or service purchased at various prices.

Income

The total money received by an individual or household from various sources like wages, investments, and benefits, over a specified period, often used to fund expenditures.