If the U.S. Current Account Balance Is Positive

question 7

Multiple Choice

If the U.S. current account balance is positive,

• A)U.S. citizens must have purchased more merchandise abroad than they sold abroad.
• B)the foreign-exchange value of the dollar must be rising.
• C)the foreign-exchange value of the dollar must be falling.
• D)U.S. citizens have funds to lend to foreigners.

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Definitions:

Dividends Payable

A liability account recording the amount a company owes to its shareholders in announced dividends to be paid.

Retained Earnings

Retained earnings refer to the portion of a company's profits that is retained or kept within the company instead of being paid out to shareholders as dividends, to be reinvested in business operations or to pay off debt.

Retained Earnings

Cumulative net earnings not distributed as dividends to shareholders, reinvested in the business or available for debt repayment.