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Almost all goods and services are perishable, meaning they lose value in time. Money is made perishable by
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- The purchasing power of money deteriorates over time. Please give short explanation and an example.Too much money in an economy with too little goods and services creates: a. None of the choices b. Disinflation O c. Inflation O d. DeflationIs the value of money affected by time, and if it is, in which direction? O a. It is not affected O b. It depends O C. It is affected, the present value of money decreases the bigger the time horizon is O d. It is affected, the present value of money increases the bigger the time horizon is
- Explain how time affects the value of money.Which explanation BEST describes John Maynard Keynes' "The Paradox of Thrift?" a. Individuals should reduce spending to cut debt. b. When an individual reduces her or his own spending, he or she reduces someone else's revenue. C. Individuals should borrow money during uncertain economic times. d. Individuals should only borrow money when times are good.Explain and critically evaluate advantages and disadvantages of fiat money.
- The costs or benefits of holding or not holding money over time refers to the concept of: the time value of money. the market approach to fair value accounting. classification of a liability. a commitment.Whether an asset is "liquid" often depends on what situation you are in. For each of the following pairs of assets, which is more liquid in the particular setting? A) You want to buy a sofa: A savings account or currency? B) You want to trade for a bologna sandwich in elementary school: A peanut butter and jelly sandwich or sushi? C) You want to buy a house: Currency or a checking account? D) You live in a post-apocalyptic wasteland: Rice or currency? E) You are traveling across Europe during the Middle Ages: Gold coins or works of art? F) You are an investment banker buying a corporation: U.S. Treasury bonds or currency?How does time affect the value of money?
- Explain in your own words the concept of the time value of money.Which of the following is true about TIME VALUE OF MONEY? RO received today is more valuable than RO received tomorrow ( Future) RO received today is equal to RO received in the future RO received today is equal to RO received yesterday RO received today is more valuable than RO received yesterdayWhat is a question that should be asked about accounts payable when forecasting? a.) What are the costs associated with storing goods? b.) How much bad debt should be anticipated? c.) How much cash is needed on hand to meet current liabilities? d.) How quickly can we replenish goods?