Which of the Following Statements Is FALSE

question 41

Multiple Choice

Which of the following statements is FALSE?

• A)Finding the present value (PV)and compounding are the same.
• B)The equivalent value of two cash flows at two different points in time is sometimes referred to as the 'time value' of money.
• C)A dollar today and a dollar in one year are not equivalent.
• D)If you want to compare or combine cash flows that occur at different points in time, you first need to convert the cash flows into the same units or move them to the same point in time.

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Definitions:

M1

A category of the money supply that includes physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.

Savings Deposits

accounts held at financial institutions that allow deposits and withdrawals and are subject to modest interest rates.

Commodity Money

Money that has intrinsic value and can be used for purposes other than as a medium of exchange, such as gold or silver.

Legal Tender

The government-mandated currency that must be accepted as payment for debts.