Which of the Following Statements About the Time Value of Money

question 109

Multiple Choice

Which of the following statements about the time value of money concept is true?

• A) It means a dollar received today is worth less than a dollar received tomorrow.
• B) It assumes that inflation rate remains constant for the foreseeable future.
• C) It refers to the fact that higher cash flows in earlier years are less desirable.
• D) It assumes that people prefer to consume things at some time in the future rather than today.

---

Definitions:

Associative Group

A collection of individuals or entities linked by a common interest or purpose that influences their buying behavior or perceptions.

Associative Group

Networks or associations formed between individuals or organizations that share common interests or goals, often for mutual benefit or influence.

Greek Letters

Symbols derived from the Greek alphabet that are used in various fields, including mathematics, science, and finance, to represent specific concepts or variables.

Sororities

Women's organizations in colleges or universities that focus on social, academic, and philanthropic activities.