How many the following statement(s) is/are true?

I.

II. III.

IV.

a. 0

b. 1

c. 2

Disregarding risk, if money has time value, it is impossible for the present value of a given sum to exceed its future value.

Other things held constant, the higher the expected inflation, the higher the nominal interest rate.

Time lines cannot be constructed in situations where some of the cash flows occur annually but others occur quarterly.

Time lines are not useful for visualizing complex problems prior to doing actual calculations. d. 3

e. 4