Which of the Following Statements Is FALSE

question 79

Multiple Choice

Which of the following statements is FALSE?

• A)The process of moving a value or cash flow backward in time is known as discounting.
• B)FV =
• C)The process of moving a value or cash flow forward in time is known as compounding.
• D)The value of a cash flow that is moved forward in time is known as its future value.

---

Definitions:

Operation of Law

Changes in rights, duties, or obligations automatically enforced by the legal system without the need for action by the parties involved.

Condition Precedent

A condition in a contract that must be met before a party's promise becomes absolute.

Avoidable

Capable of being prevented or circumvented through careful action or strategic planning.

Collateral Agreement

An agreement that has its own consideration, but supports another agreement.