Which of the following best describes the present value of one dollar received one year from today?
(A)It is worth more than a dollar received today.
(B)It is worth less than a dollar received today.
(C)It has the same value as a dollar received today.
(D)It decreases as interest rates decrease.
(E)It is not affected by changes in interest rates.
If the annual interest rate is 5 percent, then the present value of $1.00 received one year from now is closest to
(A)$1.50
(B)$1.05
(C)$1.00
(D)$0.95
(E)$0.05
Of the following, the most liquid asset is
(A)mutual funds
(B)currency
(C)time deposits
(D)demand deposits
(E)savings deposits