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 tendency of individuals to value present consumption over future consumption. This can be seen in the financial world through investors preferring current cash flows (such as dividends) over future cash flows.

Time Preference Refers to the Fact That