The Shorter the Time Until a Payment

question 77

Multiple Choice

The shorter the time until a payment:

• A)The higher the present value
• B)The lower the present value because time is valuable
• C)The lower must be the interest rate
• D)The higher must be the interest rate

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Definitions:

CPI

The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Purchasing Power

How much a single unit of money can purchase in terms of goods or services, indicating the currency's value.

CPI

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Period

A length or portion of time.