The time value of money is created by [blank].
A)the existence of profitable investment alternatives and interest rates
B)the fact that the passing of time increases the value of money
C)the elimination of the opportunity cost as a consideration
D)the fact that the value of saving money for tomorrow could be more or less than spending it today

Question

Quizplus · Accepted Answer

The time value of money is primarily created by the existence of profitable investment alternatives and interest rates. As time passes, the value of money changes depending on its earning capacity through investing. The opportunity cost is still a consideration, as one can choose between spending money now or investing it to earn more in the future. However, interest rates and investment options are the main factors that contribute to the time value of money.

The Time Value of Money Is Created by [Blank]