If a Dollar a Year from Now Will Likely Have

question 33

Multiple Choice

If a dollar a year from now will likely have less purchasing power because of inflation, then a dollar today ________ a dollar a year from now.

• A)is more valuable than
• B)is less valuable than
• C)has the same value as
• D)may be more valuable or less valuable than

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Definitions:

Asset-Based Lending

A type of financing where loans are given based on the value of an individual's or company's assets.

Loan Collateral

Assets or property pledged by a borrower to secure a loan, serving as a guarantee for the lender that the loan will be repaid.

Liquidation Value

The estimated total value of a company's physical assets if it were to be terminated and the assets sold, typically assessed in the context of a business facing bankruptcy.

Diversify Risk

The strategy of spreading investments across various sectors or assets to reduce the overall risk exposure.