The Four Most Fundamental Factors That Affect the Cost of Money

question 21

True/False

The four most fundamental factors that affect the cost of money are (1)production opportunities, (2)time preferences for consumption, (3)risk,and (4)weather conditions.

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Definitions:

Necessary

Something that is essential or required in a particular situation or for achieving a specific outcome.

Necessaries

That which is reasonably necessary for a minor’s proper and suitable maintenance, in view of the income level and social position of the minor’s family.

Reasonable Value

The fair or market value of goods or services, assessed based on what a reasonable buyer would be willing to pay under similar circumstances.

Lacked Capacity

Refers to a situation where an individual does not have the legal ability to enter into a binding contract, often due to age, mental condition, or intoxication.