Multiple choice

Time value of money means

  1. a sum of money received today has more value than the same amount of money to be received in future because the money received today can be invested today to get some more earning

  2. since there is risk involved in future, an individual would always like to receive money today than to wait for future and be under risk

  3. the money received today can be used for any consumption which one may not be able to do because of future inflation and price rise

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Correct Answer: All of the above

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