General Studies · Time Value of Money
The fundamental reason for the time preference of money is that:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Present consumption yields no utility
- 2Interest rates are regulated by central banks
- 3Future cash flows are uncertain and current funds have earning capacity✓
- 4Inflation always erodes purchasing power
Correct answer
Future cash flows are uncertain and current funds have earning capacity
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