Assuming a Positive Interest Rate, the Present Value of Money

question 11

Multiple Choice

Assuming a positive interest rate, the present value of money suggests:

• A) $1 today = $1 in one year.
• B) $1 today > $1 in one year.
• C) $1 today < $1 in one year.
• D) $1 today ≤ $1 in one year.
• E) none of these.

---

Definitions:

Statute of Frauds

A legal doctrine that requires certain types of contracts to be in writing and signed by the party to be charged, to be enforceable.

Writing

The process of using symbols, such as letters, to communicate thoughts and ideas in a readable form.

Enforceable

Capable of being imposed or implemented legally, such as a contract or rule.

Contracts

Legally enforceable agreements between two or more parties with mutual obligations.