The Time Value of Money Quiz

The concept that there is no benefit to receiving a sum of money now rather than an identical sum later

The concept that the value of money remains constant over time

The concept that receiving a sum of money later is always better than receiving it now

The concept that there is greater benefit to receiving a sum of money now rather than an identical sum later (correct)

Compensates for the preference to spend money now

Compensates for the loss of use of money (correct)

Compensates for the increase in value of money over time

Compensates for inflation only

They anticipate a decrease in the value of money over time

They prefer to keep their money without any expectation of return

They expect a favorable net return on their investment in the future (correct)

They are not concerned about the time value of money

<p>Time value of money</p> Signup and view all the answers

<p>Recognizes the time value of money</p> Signup and view all the answers