Question

What best explains the time value of money? the concept is another way to explain how inflation works. it just means that it's best to have money today, so it can be put to work sooner to make even more money. this is just a banking term. it's insider jargon for compound interest. it means that, as time goes by, a dollar buys more today than it will tomorrow because of inflation. of course, in a deflationary economy the process is inverse?

Answer 1

Time value of money it's best to have money today, so it can be put to work sooner to make even more money. When you have money now, you can invest and start building interest on it. The quicker you have money, the quicker you start to grow your money and the sooner it can double, triple etc.