When We Say That the Present Value of $100 Received

question 2

Multiple Choice

When we say that the present value of $100 received in one year is $97.56, we are also saying that:

• A)you prefer receiving $100 in the future to $97.56 today.
• B)you prefer receiving $100 today to $100 in one year.
• C)you are indifferent between receiving $100 in the future and $97.56 today.
• D)you are indifferent between receiving $97.56 in the future and $100 today.

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Definitions:

Antitrust Policy

A set of laws and regulations aimed at promoting competition and preventing monopolies and unethical business practices.

Department of Justice

A U.S. government's federal department tasked with law enforcement and the management of justice.

Mergers

The process by which two or more companies combine operations, often to increase competitiveness or to expand market share.

Glass-Steagall Act

A law enacted in 1933 to separate commercial banking from investment banking, aimed at reducing conflicts of interest and systemic risks.