Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

Question 10 of 10
Which of the following is a true statement based upon the principle of the
time value of money?
A. The value of money does not increase or decrease as time
passes.
B. Money loses value over time if not used.
C. It is always best to receive money at a later point in time rather
than an earlier point in time.
O D. Money increases in value as time passes so long as it is not
invested.

Sagot :

sebastiansierraocm

Answer:

B. Money loses value over time if not used.

Explanation:

Money loses value over time and the reason why is inflation.

Inflation is the general increase in the price of the goods and services within an economy. Inflation causes money to lose value over time if not used because it reduces the purchasing power of money. This is why money should be used if it is not to be spent, mainly as a form of investment with the goal of earning an interest rate that is higher than inflation, or at least, equal to inflation.

Answer:

B. Money loses value over time if not used.

Explanation:

Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.