Question

Which of the following statements is true? Group of answer choices The further in the future you receive a dollar, the less it is worth today. The value of a dollar invested at a positive interest rate decreases over time. A dollar in hand today is worth less than a dollar to be received in the future. The higher the rate of interest, the more likely an investor will elect to consume at present and forgo invest his funds.

Answer 1

Answer:

B). The further in the future you receive a dollar, the less it is worth today.

Explanation:

The second option asserts a true claim that 'the later we receive a dollar in future, the less it is worth today' as the market value of dollar can be seen significantly rising and therefore, it's value is much higher in relation to the value of other currencies across the globe. If a person receives a dollar today, it's worth can be much higher in the upcoming time and therefore, a lower amount today can become a huge amount tomorrow, if invested properly today. Thus, option B offers a true statement while the others state incorrect claims.