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.

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Definitions:

Static

describes something that does not change or move, often used in contrast to dynamic processes or structures.

Modern Social Theories

Contemporary theories in sociology that aim to understand how societal structures, patterns, and institutions interact with individual behaviors and consciousness.

Power

The ability or capacity to influence the behavior of others or the course of events, often through the possession of authority, strength, or resources.

Social Problems

Issues within a society that are widely recognized as being detrimental to the welfare of society members and are in need of remedy, such as inequality, poverty, and crime.