--%>

Why does money contain time value

Why does money contain time value?

Positive interest rates denote that money has time value. While one person lets another borrow money, the first person needs compensation in exchange for decreasing current consumption. The person who borrows the money is eager to pay to increase current consumption. The required rate of return on investment reflects the pure time value of money, adjustment for expected inflation, and any risk premiums present.

   Related Questions in Finance Basics

  • Q : Assignments i want to write final

    i want to write final report about my state Texas. using the resources that i attached and the other resources to cover the outlines.

  • Q : How does preemptive right secure

    How does a preemptive right secure the interests of present stockholders? A preemptive right secure the interests of existing stockholders through giving them the chance to preempt other investors into the purchase of new shares. If these right

  • Q : Explain primary assumption behind

    Explain primary assumption behind the experience approach to forecasting?The experience approach to forecasting is depending on the supposition that things will happen a certain way in the future since they happened that way in the past. For exa

  • Q : Question based on consolidated balance

    Normal 0 false false

  • Q : Technological improvement of production

    Normal 0 false false

  • Q : What is Statute Statute: It is a

    Statute: It is a written law enacted by the Legislature and signed by the Governor or a vetoed bill overridden by a 2/3 vote of both houses), generally referred to by its chapter number and the year in which it is passed. The statutes which modify a s

  • Q : Correlate each to the New Economy

    Normal 0 false false

  • Q : Explain Year of Budget Year of Budget

    Year of Budget (YOB): In this the fiscal year revenues and expenses are recognized. For revenues, this is usually the fiscal year whenever revenues are earned. For expenses, this is usually the fiscal year whenever obligations, compri

  • Q : Define the term Judgments Judgments :

    Judgments: It is generally refers to decisions made by courts against the state. The payment of judgments is subject to a range of controls and procedures.

  • Q : Explain Conference Committee Conference

    Conference Committee: It is a committee of three members (that is two from the majority party and one from the minority party) from each house, appointed to gather and resolve differences among versions of a bill (example, when one house of the Legisl