Final answer:
The time value of money concept refers to the idea that the value of money changes over time due to factors such as interest rates and inflation. The correct statement that characterizes this concept is that the present value of a dollar received in the future is less than a dollar. Therefore, the correct option is A.
Step-by-step explanation:
The time value of money concept refers to the idea that the value of money changes over time due to factors such as interest rates and inflation.
Option a, the present value of a dollar received in the future is less than a dollar, accurately characterizes this concept. This is because money received in the future is worth less than the same amount of money received in the present. Present value calculations are used to determine the worth of future cash flows in today's dollars.