Time value of money refers to the idea that a speciﬁc amount of money
A) can be converted into other currencies in the foreign exchange market.
B) is needed to purchase goods and services.
C) is more valuable the sooner it is received.
D) can buy less goods and services if inﬂation occurs over time.

Question

Quizplus · Accepted Answer

The time value of money concept states that money is more valuable the sooner it is received. This is because money can earn interest or be invested to generate returns over time. Therefore, receiving money earlier allows for more opportunities for growth and accumulation. This concept is important in areas such as finance and investing where decisions are made based on the time value of money.

Time Value of Money Refers to the Idea That a Speciﬁc