Who Gains When There Is Unexpected Deflation

question 85

Multiple Choice

Who gains when there is unexpected deflation?

• A) real-asset owners
• B) borrowers
• C) lenders
• D) real-asset owners, borrowers, and lenders

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Definitions:

Cash Dividend

A payment made out of a company's profits to its shareholders, as determined by the company's board of directors, usually provided in cash.

Regular Dividend

A dividend paid by a company to its shareholders at regular intervals, often quarterly, semi-annually, or annually.

Repurchase Stock

The act of a company buying back its own shares from the marketplace, which can affect shareholder value and earnings per share.

Residual Dividend Policy

A strategy where dividends paid to shareholders are based on earnings left after all operational and expansion expenses and investments are covered.