Time Value of Money (TVM) Quiz Questions and Answers
1. What does the Time Value of Money (TVM) concept state?
a. Money grows over time
b. The value of money changes over time
c. Time is valuable
d. Money is the only valuable asset
Answer: b. The value of money changes over time
Explanation: The Time Value of Money concept states that the value of money is not constant and changes over time due to factors like inflation and interest rates. Options a, c, and d are incorrect because they do not capture the essence of how the value of money changes.