Which of the Following Statements Regarding the Time Value of Money

question 69

Multiple Choice

Which of the following statements regarding the time value of money is not true?

• A) The amount to invest now to receive more in the future is the future value.
• B) Present value is always less than the future value.
• C) The exact present value depends on the interest rate, the length of time and the principal amount.
• D) Money earns interest over time.

Apply arithmetic operations in financial contexts, such as addition and subtraction of transactions.

Identify the components of a transaction such as deposits, checks, and bank charges.

Analyze financial statements to adjust cash balances.

Demonstrate the ability to compute new balances after multiple financial transactions.

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Definitions:

Accepting Information

Accepting Information is a communication skill where the recipient receives data or facts from another source without negative judgment, showing an openness and willingness to understand the content.

Cognitive Restructuring

A therapeutic technique aimed at identifying and challenging negative thought patterns to replace them with more positive and adaptive thoughts.

Dysfunctional Cognitions

Distorted, irrational thoughts that contribute to and maintain psychological disorders.

Coping Efforts

The conscious strategies or actions taken by individuals to deal with stress, adversity, or emotional distress.