Final answer:
The principle of finance mentioned refers to the preference of receiving a dollar sooner rather than later, highlighting the time value of money and how it shapes consumer and business financial behaviors.
Step-by-step explanation:
One of the most basic principles of finance is that rational individuals prefer to receive a dollar sooner than a dollar later. This concept is rooted in the time value of money, which suggests that a dollar today is worth more than a dollar in the future due to its potential earning capacity. This preference for immediacy is reflected in consumer behavior, such as college students who borrow money to cover expenses with the expectation of paying it back when they have higher income, or businesses that seek financial investments for long-term projects with confidence in future repayment. The shifting of the quantity demanded of financial capital based on confidence further illustrates this principle.
Answer: a) Sooner; Later