Which term means money is withheld or postponed until a future time or event?

Which term means money is withheld or postponed until a future time or event?

• A. Immediate
• B. Accelerated
• C. Deferred
• D. Maturity

Answer: (C)

Postponing a payment to a future date is described by the term deferred. This means the money is held back now and will be paid or received later, after a specified deferral period or event. Immediate means payment right away, accelerated means occurring sooner than planned, and maturity refers to the final due date of a loan or investment, when the principal is repaid. So deferred best captures the idea of money being withheld until a future time.

Postponing a payment to a future date is described by the term deferred. This means the money is held back now and will be paid or received later, after a specified deferral period or event. Immediate means payment right away, accelerated means occurring sooner than planned, and maturity refers to the final due date of a loan or investment, when the principal is repaid. So deferred best captures the idea of money being withheld until a future time.