What does inter-temporal allocation of resources refer to?
A
Postponing allocation of resources until the time is right
B
Allocation of resources over time
C
Temporary allocation of resources
D
Diversification of resource allocation
Correct Answer: Allocation of resources over time
Inter-temporal allocation of resources refer to Allocation of resources over time. One of the principal purposes of saving and investing is to achieve inter-temporal allocation of resources, which is both efficient and effective. Effective allocation implies that sufficient funds are available to satisfy successfully the various needs as they arise in different stages of the life cycle.