The time value of money refers to
A)personal opportunity costs such as time lost on an activity.
B)financial decisions that require borrowing funds from a bank.
C)changes in interest rates due to changes in the supply and demand for money in the national economy.
D)the difference in values of money as to when it is received.

Question

Quizplus · Accepted Answer

The time value of money refers to the difference in values of money as to when it is received. This means that money received today is worth more than the same amount of money received in the future due to factors such as inflation and the potential for investment returns. This concept is important in understanding the true cost and benefit of financial decisions over time.

The Time Value of Money Refers to