The Chief Financial Officer of Orange Motors Inc.recently mentioned in an interview that a dollar received today is worth more than a dollar received in the future because the sooner you receive a sum of money, the quicker you can put that money to work. The Chief Financial Officer was speaking about the _________.
A)present value of money
B)assumed value of money
C)future value of money
D)time value of money

Question

Quizplus · Accepted Answer

The CFO was referring to the concept of time value of money, which explains that the value of money today is worth more than the same amount of money in the future due to various factors such as inflation and opportunity cost. The present value and future value of money, as well as the assumed value of money, are related concepts but not the ones specifically mentioned in the CFO's statement.