Assets that generate no utility directly:
A)can be expected to grow in value at a rate greater than the rate of interest.
B)should grow in value at a rate equal to the rate of interest.
C)should not be expected to grow in value.
D)can be expected to grow in value at a rate lower than the rate of interest.

Question

Quizplus · Accepted Answer

Assets that generate no utility directly should grow in value at a rate equal to the rate of interest. This is because their value is derived from their potential to be converted into cash or other forms of assets that do generate utility, and the rate of interest is a measure of the time value of money.

Assets That Generate No Utility Directly