{"id":38907,"date":"2020-06-08T15:00:59","date_gmt":"2020-06-08T09:30:59","guid":{"rendered":"https:\/\/www.oliveboard.in\/blog\/?p=38907"},"modified":"2020-06-14T12:34:09","modified_gmt":"2020-06-14T07:04:09","slug":"time-value-of-money-rbi-grade-b-study-notes","status":"publish","type":"post","link":"https:\/\/www.oliveboard.in\/blog\/time-value-of-money-rbi-grade-b-study-notes\/","title":{"rendered":"Time Value of Money PDF Notes – For RBI Grade B & SEBI Grade A Exams"},"content":{"rendered":"

Reserve Bank of India<\/strong> being the central bank of the country<\/strong> is a great organisation to work for. Every year Lakhs of aspirants apply for the RBI Grade B posts<\/strong> as it offers great career opportunities<\/strong> as well as impressive perks & allowances to its officers<\/strong>. The Grade B<\/a><\/strong><\/span> recruitment notification is expected to be announced in the month of June-July 2019 most probably. It is highly advisable to start with your preparations from now on<\/strong> itself so that when you are suddenly notified of the recruitment notification, you have already covered a prominent portion of the syllabus. The Grade B Exam is conducted in three stages namely Phase I<\/strong><\/a><\/span>, Phase 2<\/strong><\/a><\/span> and the Interview round<\/strong>.<\/p>\n

Toppers of the exam have always suggested to carry on the preparations and study for both Phase 1<\/a><\/span> and Phase 2<\/a><\/span> simultaneously<\/strong> because the syllabus of Phase 2 of RBI Grade B is vast and requires thorough knowledge and persistence in studies. The subjects asked in the Phase 2 Exam are Economics & Social Issues<\/strong>, Finance & Management<\/strong> and Descriptive English<\/strong>. So to give you a helping hand in your studies for the Grade B Exam, we at Oliveboard would be providing you study notes<\/strong> on important topics from the syllabus of Phase 2<\/strong>. In this blog, we will cover the topic of Time Value of Money – RBI Grade B Study Notes.<\/strong><\/p>\n

Enrol here for the RBI Grade B Course Here & Use S10 to Get 10% Off<\/strong><\/a><\/span><\/p>\n

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Time Value of Money PDF Notes – Download Here<\/span><\/strong><\/em><\/h2>\n

Download the free PDF Notes Here:\u00a0<\/span><\/p>\n

\"download\"<\/a><\/p>\n

Time Value of Money<\/strong><\/span><\/h3>\n

“A rupee today is more valuable than a year later.” This is the “time value of money” concept based on. The consideration of the time value of money<\/strong> and risk<\/strong> is extremely important in making important financial decisions.<\/span><\/p>\n

Time value of money is central to the concept of finance<\/strong>. It recognises that the value of money is different at different points of time. Since money can be put to productive use, its value is different depending upon when it is received or paid. In simpler terms, the value of a certain amount of money today is more valuable than its value tomorrow.<\/span><\/p>\n

Factors Affecting Value of Money:<\/strong><\/span><\/h3>\n
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  1. Risk and Uncertainty<\/span><\/li>\n
  2. Inflation<\/span><\/li>\n
  3. Consumption<\/span><\/li>\n
  4. Investment Opportunities<\/span><\/li>\n<\/ol>\n

    The time value of money draws from the idea that rational investors prefer to receive money today rather than the same amount of money in the future because of money’s potential to grow in value over a given period. For example, money deposited into a savings account earns a certain interest rate and is therefore said to be compounding in value.<\/span><\/p>\n

    Valuation: <\/strong><\/span><\/h3>\n

    It establishes that there is a preference for having money at present than a future point of time.<\/span><\/p>\n