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:

WTO

The World Trade Organization, an intergovernmental organization which regulates international trade.

Binding Decisions

Rulings or agreements that are legally enforceable and must be followed by the parties involved, often used in the context of legal and contractual arrangements.

Member Nations

Countries that are part of an international organization or agreement and agree to abide by its terms.

GATT

Stands for the General Agreement on Tariffs and Trade, which was a multilateral agreement aiming to reduce tariffs and other trade barriers internationally until it was replaced by the WTO.