Which of the following is not true about the time value of money affecting investments?
Understand the Problem
The question is asking which statement is false regarding the impact of the time value of money on investments. It presents multiple statements, and the task is to identify the one that does not hold true.
Answer
Investors seek higher returns by other means, not certificates of deposit.
The statement 'Many investors today seek higher returns by investing in certificates of deposit' is not true about the time value of money affecting investments.
Answer for screen readers
The statement 'Many investors today seek higher returns by investing in certificates of deposit' is not true about the time value of money affecting investments.
More Information
Certificates of deposit typically offer lower, more stable interest rates, which are not considered high-return investments compared to stocks or mutual funds.
Tips
Confusing certificates of deposit with high-return investments is a common mistake.
Sources
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