Which of the Following Statements Is True of Time Value

question 45

Multiple Choice

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

• 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:

Needs

Needs are essential requirements or desires that drive behavior and motivate actions to achieve satisfaction or fulfillment.

Consciousness

The state or quality of awareness of an individual's thoughts, feelings, sensations, and surroundings; a fundamental aspect of human experience.

Unconsciousness

A state where an individual is unaware of their surroundings and unable to respond to stimuli, also refers to the part of the mind that contains thoughts and memories not presently in conscious awareness.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.