The reason that finding the present value of a future sum of money req – McqOptions

MCQOPTIONS

1.	The reason that finding the present value of a future sum of money requires us to discount it, is that:
A.	Inflation will reduce its purchasing power
B.	We can t be certain of receiving it
C.	We don t know when we shall receive it
D.	Waiting deprives us of its use
Answer» E.

Discussion

No Comment Found

Related MCQs

Intermediaries who link buyers and sellers by buying and selling securities at stated prices are called
Under this method of floatation in primary market, a subscription is invited from general public to invest in the securities of a company through the issue of advertisement.
Which of the following actions might you expect lenders to take during periods of variable and unpredictable inflation?
The presence of in financial markets leads to adverse selection and moral hazard problems that interfere with the efficient functioning of financial markets.
___________ is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities.
Any company making a public issue of value of more than Rs. is required to file a draft offer document with SEBI.
It is a market for short-term funds which deals in monetary assets whose period of maturity is up to one year.
They can be issued to individuals, corporations and companies during periods of tight liquidity when the deposit growth of banks is slow but the demand for credit is high.
According to --------- theory of interest, the rate of Interest is the price of credit which is determined by the demand and supply for loanable funds.
If people are willing to lend at 7% when inflation is 2% and continue to lend the same amounts when inflation is 4% and interest rates have risen to 8%, they are assumed to be subject to: