Which of the Following Statements About the Time Value of Money

question 30

Multiple Choice

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

• A) The value of a dollar invested at a positive interest rate decreases over time.
• B) The further in the future you receive a dollar, the less it is worth today.
• C) A dollar in hand today is worth less than a dollar to be received in the future.
• D) The higher the rate of interest, the more likely an investor will elect to consume at present and forgo invest his funds.

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Definitions:

Zuckerman

Refers to Marvin Zuckerman, a psychologist known for his research on sensation seeking, a personality trait characterized by the search for experiences and feelings that are varied, novel, complex, and intense.

Self-Efficacy

A person's belief in their ability to succeed in specific situations or accomplish a task, central to Bandura's theory of social learning.

Locus of Control

A psychological concept referring to an individual's belief about how much control they have over the events in their life.

Bandura

Albert Bandura, a prominent psychologist recognized for his social learning theory, emphasizing the role of observational learning, self-efficacy, and reciprocal determinism in behavior.