Cima C04 Exam Question No 26

Question no 26:

Which of the following are reasons why future income is usually valued less than current income?
(i) Inflation may reduce the value of future income
(ii) Future income flows are riskier than current flows
(iii) The lender must delay the pleasure from the consumption that the money could buy now
(iv) Higher interest rates

A. (i) and (ii) only
B. (i) and (iii) only
C. (ii), (iii) and (iv) only
D. (i), (ii) and (iii) only

Answer: D