Question 1 1 point The more time there is the less its effec

Question 1 (1 point)

The more time there is, the less its effect on the value of wealth.

Question 2 (1 point)

Time creates risks, uncertainties, opportunities, and opportunity costs.

Question 3 (1 point)

Cash flows in the future are liquid.

Question 4 (1 point)

The time value of money can be understood but not calculated concretely.

Question 5 (1 point)

Time discounts value.

Question 6 (1 point)

The discount rate is the opportunity cost of not having liquidity.

Question 7 (1 point)

Evaluating alternatives for financial decisions always involves speculation.

Question 8 (1 point)

Opportunity costs are foregone choices or sacrificed alternative uses of wealth.

Question 9 (1 point)

The rate at which time affects the value of money is called the discount rate.

Question 10 (1 point)

Time affects value because time affects liquidity.

Solution

1.

The statement false, the more the time, more will be the value of the wealth.

2.

The statement is correct.

3.

The statement is false, because future is uncertain and the cash flow which will occur in the future is not certain.

4.

The statement is false, we can accurately calculate time value of money if we know inflation, interest rate, or required rate.