Busıness Fınance I Deneme Sınavı Sorusu #1366990

I. Reinvestment opportunities

II. Uncertainty of future

III. Effects of inflation

IV. Lack of money supply

Which of these explains why there is a concept of time value of money?


I and II only

I, II and III only

II, III and IV only

I, II and IV only

I, II, III and IV


Yanıt Açıklaması:

e concept of time value of money suggests that people prefer cash sooner than later. There are three explanations behind this way of thinking: (1) reinvestment opportunities, (2) uncertainty of future, and (3) effects of inflation.

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