When a Corporation Pays a Dividend in the Form of Additional

question 127

Multiple Choice

When a corporation pays a dividend in the form of additional stock, the dividend is called a

• A) cash dividend.
• B) stock split.
• C) retained earning.
• D) stock dividend.
• E) stock conversion.

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Definitions:

Real Exchange Rate

The rate at which the goods and services of one country can be exchanged for those of another, adjusted for inflation.

National Saving

The total amount of savings generated within a country, typically calculated as the sum of private and public savings after accounting for investments and budget deficits.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of assets, usually expressed as an annual percentage rate.

Net Capital Outflow

A contrast in the buying of foreign assets by residents of a country and the acquisition of its assets by non-residents.