Time Value of Money Is Important Because

question 117

Multiple Choice

Time value of money is important because

• A) you do not want to wait a long time to get paid.
• B) deflation eats away at the value of a dollar.
• C) the present value of future cash flows is affected by inflation.
• D) time value of money is not as important to a person's finances as budgeting.

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Definitions:

Budget Line

An illustrated chart depicting all the different pairings of two items that are purchasable within a certain budget and cost framework.

Price of Food

The monetary value assigned to food products, influenced by factors such as production costs, supply and demand.

Rotation

The act of turning around a center or an axis, often used metaphorically to describe a systematical shift in processes or roles.

Budget Line

A graphical depiction of all possible combinations of two goods that a consumer can purchase with a given income and prices.