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Inflation can erode the value of money over time.
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∙ 8y ago
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Why does the value of money save increase over time?
because it earns intrest
What is currency stability?
Currency stability is when money is worth a set amount over a period of time. There is not a fluctuation in the value of currency.
What are the financial applications of the time value of money?
(a) list various financial applications of the time value of money (b) Explain the components of a discount/ interest rate
Significance of time value of money?
money has time value for the following reasons:(1) present consumption preference.(2) uncertainty.(3) Interest rate.(4) Inflation.(5) Deflation.(6) Gold price.
When economists say that money is a store of value does it mean that money can be used to measure the value of other commodities?
Money has three functions, being a: 1) store of value; 2) unit of account; 3) medium of exchange. The first, a store of value, implies that money maintains and stores its value over time - unlike many other mediums of exchange, which can depreciate. Money is intended to be storeable, retrievable, and reuseable as a medium of exchange itself. Therefore, being a store of value does not mean that money can be used to measure the value of other commodities - that is its third function, medium of exchange.
What does time value of money refer to?
The time value of money is the increase in, or future/prjected value of, an amount of money, due to the implied interest earned on it over a period of time.
Money that does not fluctuate in value over time is said to be?
durable
What happens to the stump over time?
The stump will decay/erode and collapse into the sea.
How does the grand canyon erode or evolve over time?
it turns into a old man
Why does the value of money save increase over time?
because it earns intrest
What effect does the headland have on the beach?
Eventually, the headlands will erode and get smaller and smaller until it turns into lots of stumps and then they will erode over time.
What will happen to the stump over time?
The stump will decay/erode and collapse into the sea.
Is this a true or false statement the value of money remains constant over time?
false
Why does the value of money you save increase over time?
because having it saved earns interest over time
Time value of money refers to?
Over the years, money either rises in value or lowers. Like in the 1910's, 59 bucks was like 400 bucks today!
What breaks rocks into smaller and smaller pieces?
Rocks erode from mainly wind and water over time.
Have sand dunes been known to migrate?
Sand Dunes erode over time usually, however, in the desert it is possible for sand from one dune to be blown off and form another dune. Over time that single dune could "migrate" in a way. Sand dunes on the beach however usually just erode over time, they do not usually move.
