Money has a greater time value
A)when rates of return are higher.
B)when rates of return are lower.
C)when the future is uncertain.
D)when investors are willing to assume greater risks.

Question

Quizplus · Accepted Answer

When rates of return are higher, the present value of future money is lower, which means that the future money has a greater time value. This is because the opportunity cost of not investing the money now to earn a high return is higher, making the future money more valuable.

Money Has a Greater Time Value