Time Value of Money Quiz for CA Foundation Students
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Questions and Answers

What is the concept that states the value of money today is worth more than the same amount in the future due to its potential earning capacity?

  • Nominal value of money
  • Intrinsic value of money
  • Future value of money
  • Present value of money (correct)

    • Which factor is used to calculate the future value of an investment?

  • Interest rate (correct)
  • Current inflation rate
  • Exchange rate
  • Tax rate

    • What concept refers to the idea that a dollar today is worth more than a dollar in the future due to its potential earning capacity?

  • Wealth accumulation principle
  • Money appreciation theory
  • Inflation adjustment concept
  • Time value of money (correct)

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