Final answer:
The higher the time value of money is, the lower the present value of a future amount becomes because it is less desirable to wait for that future money.
Step-by-step explanation:
The time value of money is a concept that recognizes the value of money changing over time due to potential earning capacity. When the time value of money is higher, individuals prefer not to wait for future money, because the opportunity cost of not having that money in the present is higher. This opportunity cost is related to the potential returns one could earn if the money were received today and invested. Therefore, the higher the time value of money, the lower is the present value of a future amount because it is less desirable to wait to get the money, hence making the correct answer (a) lower; less.