If the Financial and Capital Account Has a Deficit, The

question 135

Multiple Choice

If the financial and capital account has a deficit, the:

• A)balance of payments must have a deficit.
• B)balance of payments must have a surplus.
• C)balance on the current account must have a deficit.
• D)balance on the current account must have a surplus.

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Definitions:

Preferred Dividends

Dividends that are paid out to preferred shareholders at a fixed rate before any dividends are paid to common shareholders.

Common Dividends

Payments made to shareholders out of a corporation's earnings, reflecting the portion allocated to holders of common shares.