ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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is the amount of money a person has to spend after needs are met.
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says that money received today is worth more than money received in the future.
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is a convenient way to pay bills if you do not have a checking account.
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a record for keeping track of checks written and deposits made.
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Detailed explanation-1: -Inflation: In an inflationary economy, the money received today, has more purchasing power than the money to be received in future. In other words, a rupee today represents a greater real purchasing power than a rupee a year after.
Detailed explanation-2: -Time Value of Money (TVM) is a financial concept that describes why a dollar today is worth more than a dollar tomorrow. There are two main reasons why money in the present is worth more than an equal amount in the future: Inflation and Opportunity Cost.
Detailed explanation-3: -The time value of money is the concept that money is worth more in the present than in the future due to its potential earning capacity, or alternatively, to inflation. If you invest $100 today, that money can start earning interest or dividends.
Detailed explanation-4: -Money has a time value because it can be invested to make more money. Thus, a dollar received in the future has lesser value than a dollar received today. Conversely, a dollar received today is more valuable than a dollar received in the future because it can be invested to make more money.
Detailed explanation-5: -Answer: The complete sentence is: The value of money to be received in the future is higher than the value of the same amount of money in hand today.