A Balance of Payments Surplus Occurs If

question 148

Multiple Choice

A balance of payments surplus occurs if

• A) exports exceed imports.
• B) the supply of a nation's currency exceeds the demand for the currency at the current exchange rate.
• C) the demand for a nation's currency exceeds the supply of the currency at the current exchange rate.
• D) the supply of a nation's currency is equal to the demand for the currency at the current exchange rate.

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Definitions:

Sales Increase

A rise in the volume or value of products or services sold by a company over a specific period, reflecting business growth or market expansion.

Pro Forma Statements

Financial statements based on hypothetical scenarios or assumptions, used for planning purposes.

Dividend Policy

The strategy a company uses to decide how much it will pay out to shareholders in dividends.

Financial Planning

The process of setting goals, developing strategies, and outlining financial activities to manage money and achieve financial objectives.