Worth of a rupee received today is different from the worth of a rupee to be received in future is called
………………….
(A) Wealth rate
(B) Bond valuation
(C) Money value
(D) Time value of money
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The preference for money now, as compared to future money is known as time preference of money. “Time value of money means that the value of a sum of money received today is more than its value received after some time”, conversely the sum of money received in future is less valuable than it is to-day.
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Answer:
Option D is the correct answer
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