A Rational Response in Relation to an Investment Involving Time

question 3

Multiple Choice

A rational response in relation to an investment involving time preference for money issues is to prefer to receive a given sum of money earlier rather than later because:

• A) there is a greater chance that the entity promising you the money may not fulfil the promise the longer the waiting period.
• B) the earlier the money is received the earlier the ability to reinvest and earn a rate of return on such funds.
• C) the earlier the money is received the earlier the ability to use the funds for current consumption.
• D) all of the above.

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Definitions:

Endocrine System

The body’s “slow” chemical communication system; a set of glands that secrete hormones into the bloodstream.

Sensory Neurons

Neurons that carry incoming information from the sensory receptors to the brain and spinal cord.

Interneurons

Neurons within the brain and spinal cord that communicate internally and intervene between the sensory inputs and motor outputs.

Motor Neurons

Neurons that carry outgoing information from the brain and spinal cord to the muscles and glands.