An Increase in Foreign Demand for U

question 87

Multiple Choice

An increase in foreign demand for U.S.exports will ____ demand for the dollar,causing the dollar to _____.

• A)decrease;appreciate
• B)increase;depreciate
• C)increase;appreciate
• D)decrease;depreciate

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Definitions:

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends.

Cash Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits in the form of cash.

Declaration of Dividends

The formal announcement by a company's board of directors to distribute profits to shareholders, specifying the dividend amount and payment date.

Liquidating Dividend

A type of dividend paid by a company from its capital base, essentially returning part of the investors' original investment.