Discounting allows comparisons of

a. money values and physical values.

b. interest payments on borrowed funds and interest payments on loaned funds.

c. money values received at different times.

d. the quantities of outputs produced by different types of capital goods.

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19 December, 13:35

Discounting allows comparisons of

a. money values and physical values.

b. interest payments on borrowed funds and interest payments on loaned funds.

c. money values received at different times.

d. the quantities of outputs produced by different types of capital goods.

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Answers (1)

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Doodles · Answer 1

Discounting allows comparison between money values received at different times.

The correct answer is C

Explanation:

Discounting involves the determination of present value of money received at different times by taking cognisance of time value of money. This is because the value received today will not remain the same as the value received at a future date.

Discounting allows comparisons ofa. money values and physical values.b. interest payments on borrowed funds and interest payments on loaned funds.c. money values received at different times.d. the quantities of outputs produced by different types of capital goods.

Discounting allows comparisons of

a. money values and physical values.

b. interest payments on borrowed funds and interest payments on loaned funds.

c. money values received at different times.

d. the quantities of outputs produced by different types of capital goods.