A Dollar Today Is Worth More Than a Dollar to Be

question 105

Multiple Choice

A dollar today is worth more than a dollar to be received in the future because

• A) a stated rate of return is guaranteed on all investment opportunities.
• B) the dollar can be invested today and earn interest.
• C) inflation will increase the purchasing power of a future dollar.
• D) None of these options are true.

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Definitions:

Sediment

Particles of rock, minerals, or organic materials deposited by water, wind, or ice, often forming layers that can turn into sedimentary rock.

Tributaries

Smaller rivers or streams that flow into a larger river or lake, contributing to its overall water volume.

Sediment

Particulate organic and inorganic material that settles at the bottom of a liquid, often transported by water, wind, or ice.

Discharge

The flow rate of water from a given source, such as a river or aquifer, typically measured in volume per unit time.