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Inflation can erode the value of money over time.

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10y ago

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Related Questions

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


How should one consider the time value of money when planning for retirement?

When planning for retirement, it is important to consider the time value of money by understanding that the value of money changes over time due to factors like inflation and interest rates. This means that saving and investing early can help your money grow more effectively over time, allowing you to have more funds available for retirement.


Why does the value of money save increase over time?

because it earns intrest


Does money lose value over time?

Yes, money can lose value over time due to inflation, which is the general increase in prices of goods and services. This means that the purchasing power of money decreases, so the same amount of money will buy less in the future than it does today.


How does the grand canyon erode or evolve over time?

it turns into a old man


What happens 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


What will happen to the stump over time?

The stump will decay/erode and collapse into the sea.


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!


Money has a greater time value when?

Money has a greater time value when it is invested or saved, allowing it to generate returns over time due to interest or appreciation. The concept is based on the principle that a dollar today can earn interest, making it worth more than the same dollar in the future. Additionally, inflation diminishes the purchasing power of money over time, further emphasizing the importance of investing money to maximize its value. Therefore, the sooner money is utilized or invested, the greater its potential worth.