The characteristics of the time value of funds, how to understand the time value of funds, and what

Understanding the time value of money:

1. The time value of funds refers to the appreciation of money over time, and it is the amount of appreciation after the use of capital turnover.

2. The time value of funds refers to the fact that a certain amount of currency held at present has a higher value than the equivalent amount of currency obtained in the future. The reason why the purchasing power of the current unit of money is different from that of the future unit of money is that in order to save the current unit of money and change to consumption in the future, there must be more than one unit of currency available for consumption in the future consumption as a discount to make up for the delayed consumption.

3. The time value of funds refers to the value-added characteristics of funds of the same amount of funds at different points in time.

Significance of the time value of money:

1. The temporal factor of capital movement is an economic category under the negative conditions of commodity production and commodity exchange. No matter what social system, as long as there is commodity production and commodity exchange, the influence of the time factor on the value of money must objectively exist.

2. Pay attention to the value of funds, which can promote the scientific control of the use and investment of funds, the scale of investment and the time and method of currency investment, and avoid unnecessary backlog and waste of funds.

3. The time value of funds affects the evaluation of the economic benefits of the investment planWhen evaluating the investment plan, it is necessary not only to calculate the amount of the initial investment of the plan, but also to calculate the impact of the "new investment" caused by the monetary time intermediary factor on the economic efficiency flow of the program.

Understanding: 1. The time value of funds.

It refers to the appreciation of money over time, and it is the amount of appreciation after the use of capital turnover. Also known as the time value of money.

2. Over time, the value of the capital will increase, which is called capital appreciation. From an investor's point of view, the value-added nature of the money gives it a time value.

3. Once the funds are used for investment, they cannot be used for immediate consumption. From a consumer's point of view, the time value of money.

This is reflected in the compensation that should be received for the loss of abandonment of spot consumption.

4. From an economic point of view, the reason why the purchasing power of a unit of currency at present is different from that of a unit of currency in the future is that if you want to save the current unit of currency and do not consume it in the future, you must have more than one unit of currency available for consumption in the future as a discount to make up for delayed consumption.

5. The time value of funds, that is, how much money should be prepared now when a fund can be used in the future. Or the question of how much money is worth now to the future.

The time value of money has significance.

1. Mastering the theory of the time value of funds is helpful for enterprises to use funds scientifically and rationally, and any assets of the enterprise can only be used as funds to realize their time value only by participating in the movement of funds, and idle assets are not current assets.

or fixed assets.

It is impossible to create time value, and over time, it will lose its original value.

2. The concept of the time value of funds can be urged to save the use of funds, fully improve the use of funds, fully realize the time value of funds, and maximize the value of funds within a limited range of time and space.

Time value of money.

It refers to the value added by the investment and reinvestment of money over a certain period of time. There are 4 factors that affect the time value of funds: 1. The time of use of funds. Under the condition of a certain capital appreciation rate per unit time, the longer the funds are used, the time value of the funds.

the larger; The shorter the usage time, the smaller the time value of the funds. 2. The size of the amount of funds. All other things being equal, the larger the amount of funds, the greater the time value of funds; Conversely, the time value of the money is smaller.

3. Characteristics of capital investment and **. In the case of a certain total capital, the more funds invested in the early stage, the greater the negative benefit of the funds; On the contrary, the more funds invested in the later stage, the smaller the negative benefit of the funds. In the case of a certain amount of funds, the closer to the present time is the more funds, the greater the time value of the funds; Conversely, the more money you have, the less time you have.

4. The speed of capital turnover. The faster the capital turnover, the greater the time value of the same amount of money in a certain amount of time; Conversely, the time value of the funds is smaller. Extended Resources:

The nature of the value of time:

Due to at-the-money and out-of-the-money options.

The intrinsic value is equal to 0. The premium (option value) will not be 0, so the time value of at-the-money and out-of-the-money options will always be greater than 0. There is a possibility that the time value of an in-the-money option is greater than or equal to less than 0.

The time value of American options is always greater than or equal to 0, while the time value of European options may be less than 0.

The time value of an American option is greater than 0 because the American option can be exercised immediately if the embedded value is higher than the premium. No one wants to sell an option because once it is sold, the buyer will exercise it immediately.

Earn a profit because the spread is greater than the premium part. However, European-style options can only be exercised on the strike date, so there are also in-the-money options where the seller is willing to sell the premium less than the intrinsic value.

This is because of put options.

Do not fall in anticipation and on call options.

There is a strong expectation that the latter may be due to the higher dividend income of the underlying asset. Therefore, the time value of a European-style option can also be less than 0.

Note: The difference in the amount of money that is worth a certain amount of money at different points in time. That is, the increase in the value of money over time in the process of investment and reinvestment.

The time value of funds is generated in the turnover and use of funds, and it is a form in which the owner of funds transfers the right to use funds and participates in the distribution of social wealth.

The time value of funds is an objective economic category, and the introduction of the concept of time value of funds in the financial management of enterprises is a necessary guarantee for doing a good job in financial activities and improving the level of financial management. The time value of money can be measured in two ways, and theoretically, the time value of money is equivalent to the average rate of profit of society under the condition of no risk and no inflation.

In fact, when inflation is very low, the time value of funds can be expressed in terms of bond interest rates.

The correct answer is: a, b, c, d options.

Answer Analysis:

Under the condition of a certain capital appreciation rate per unit time, the longer the use of funds, the greater the time value of funds, and the more the number of funds, the more time value of funds under other conditions; In the case of a certain total capital, the more funds invested in the early stage, the greater the negative benefit of the funds, the faster the capital turnover, and the more the turnover of the same amount of funds in a certain period of time, the more time value of the funds. Therefore, options a, b, c, and d are correct.

"The time value of capital refers to the capital appreciation or economic benefits generated by the change of time in the process of expanding the cycle and turnover of reproduction.

It is a dynamic concept that can be understood from two aspects: on the one hand, capital is invested in the economic field, through the productive activities of workers, and over time, it can increase in value and manifest itself as a net income.

1. The value of funds changes with time, is a function of time, and increases in value with the passage of time, and this part of the capital is the time value of the original funds. Its essence is the result of capital being used over time in the process of expanding reproduction and its capital circulation.

2. Factors affecting the time value of funds:

1.How long the funds will be used. Under the condition that the capital appreciation rate per unit time is constant, the longer the capital is used, the greater the time value of the capital; The shorter the usage time, the smaller the time value of the funds.

2.The amount of funds. All other things being equal, the greater the amount of funds, the more time value of the funds; Conversely, the time value of the money is less.

3.The characteristics of capital investment and ** difference in luff. In the case of a certain total capital, the more funds invested in the early stage, the greater the negative benefit of the funds; On the contrary, the more funds invested in the later stage, the smaller the negative benefit of the funds.

In the case of a certain amount of funds, the closer the time to the present, the more funds, the more time value of the funds; Conversely, the farther away from the present** the more funds, the less time value the funds have.

4.The speed of capital turnover. The faster the capital turnover, the more times the same amount of funds are turned over in a certain period of time, and the more time value of the funds will be; Conversely, the less time value the money has.