Which of the following statements about money is not true?
A)Income-earning investment opportunities exist.
B)Present dollars are worth more than future dollars.
C)There is an opportunity cost of holding money.
D)When interest rates are positive,future dollars are more valuable than present dollars.

Question

Quizplus · Accepted Answer

The statement that future dollars are more valuable than present dollars when interest rates are positive is not true. In fact, the concept of the time value of money suggests that a dollar today is worth more than a dollar in the future because of the potential earning capacity of the money. This is why present dollars are considered more valuable when interest rates are positive, as they can be invested to earn more money over time.

Which of the Following Statements About Money Is Not True