Time preference refers to the fact that:
A) corporations match current assets with current liabilities to minimize the chance of bankruptcy.
B) corporations match both current and long-term assets with current and long-term liabilities to minimize the change of bankruptcy.
C) investors prefer current cash flows to future cash flows.
D) investors seek to time cash flows to minimize tax liabilities.

Question

Quizplus · Accepted Answer

Time preference refers to the general tendency of people, including investors, to prefer receiving goods or cash flows earlier rather than later. This concept is fundamental in finance, particularly in the valuation of cash flows and investment decision-making processes.

Time Preference Refers to the Fact That