What is meant by the "time value of money"?

The concept of the "time value of money" is centered on the principle that the value of money changes over time due to its potential earning capacity. This means that money available at the present moment is much more valuable than the same amount of money received in the future. This increased value arises because the present amount can be invested to earn interest or returns, leading to a greater sum over time.

Option C highlights this principle by emphasizing that money available now is worth more because it can generate earnings through investment opportunities. This can involve earning interest through savings accounts, purchasing stocks, or engaging in other investment vehicles that yield returns. Therefore, the sooner you have access to money, the more opportunities you have to increase its value.

In contrast, the other options fail to capture the essence of the time value of money. The idea that money has consistent value over time ignores the impact of inflation and investment returns. The statement that future money is worth less than current money is misleading as it does not account for interest accumulation. Lastly, stating that the intrinsic value of cash remains constant does not reflect the real-world factors affecting money's worth, such as inflation or the potential for investment gains.