Under what conditions must a distinction be made between money to be received today and money to be received in the future?
A) A period of recession
B) When idle money can earn a positive return
C) When there is no risk of nonpayment in the future
D) When current interest rates are different from expected future rates

Question

Quizplus · Accepted Answer

A distinction must be made between money to be received today and money to be received in the future when idle money can earn a positive return, as this involves the concept of the time value of money.

Under What Conditions Must a Distinction Be Made Between Money