The Southern Economy by 1860 Could Be Fragile Because It

question 56

Multiple Choice

The southern economy by 1860 could be fragile because it was so dependent on

• A)northern textile mill markets.
• B)the stock market.
• C)Yankees in New York, who usually set the price of cotton.
• D)the European demand for cotton.
• E)the production of cheaper cotton than in Mexico.

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Definitions:

Low Dividend Policy

A corporate strategy involving the paying out of a small portion of a company’s earnings in the form of dividends, while retaining the majority to reinvest in the business.

Tax Deferred

Financial arrangements where investment gains such as interest, dividends, or capital gains accumulate tax free until the investor takes constructive receipt of the gains.

Net Present Value

The difference between the current value of cash inflows and the current value of cash outflows over a period of time.