Question

Which statement is true?

A) The value of money that you save increases over time.
B) The value of money remains constant over time.
C) The present value of money is greater than its future value.

Answer 1

I would say A

Answer 2

Explanation:

It is anything but A. There is too much money floating around to maintain its value or buying power. The Federal Reserve just keeps on printing more. The net effect is that your money is worth less because there is more of it.

B: Our problem is that money does not remain constant. The answer cannot be B

C: is the answer. That is exactly what is happening today.