Which of the following would be a reason for preferring $100 now rather than $100 in one year's time?

Question

Quizplus · Accepted Answer

There are multiple reasons for preferring $100 now rather than $100 in one year's time.

A) Risk: There is always a risk associated with waiting for money. The person you are expecting payment from may not be able to pay you the amount they owe you in the future, leading to losses.

B) Interest lost: If you don't receive the $100 now, you won't be able to invest it and earn interest for a year. Therefore, it is better to get your money as soon as possible to increase your financial worth.

C) The effects of inflation: Inflation is the rate at which the general price levels of goods and services increase over time. Due to inflation, you can buy less with the same amount of money in the future, so it is best to have your money now instead of waiting for it to lose its value over time.

Therefore, given all of these reasons, D) All of the above is the best choice.

Which of the Following Would Be a Reason for Preferring