Which of the Following Statements About the Time Value of Money

question 11

Multiple Choice

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

• A) A dollar received today is worth more than a dollar to be received in the future because future dollars are not affected by inflation.
• B) A dollar received today is worth less than a dollar to be received in the future because future dollars are not affected by inflation.
• C) A dollar received today is worth more than a dollar to be received in the future because funds received today can be invested to earn a return.
• D) A dollar to be received in the future is worth more than a dollar received today because it would have less risk associated with it.

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Definitions:

Task Demands

The aspects of a job or task that require mental or physical effort, setting the baseline for what is expected in performance.

Physical Demands

The requirements for physical effort and stamina that a job entails.

Downsizing

The reduction of an organization's workforce to improve efficiency, performance, or competitiveness, often involving layoffs.

Institutional Programs

Programs developed and implemented by organizations or institutions, often aimed at achieving certain goals or standards.