When the United States Has a Current Account Deficit,the U

question 171

Multiple Choice

When the United States has a current account deficit,the U.S.capital account:

• A) will have a deficit also.
• B) will be balanced.
• C) will have a surplus.
• D) must be falling.

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Definitions:

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but retained for reinvestment or debt payment.

Cash Assets

Resources in the form of currency or other items that can be easily converted to cash.

Cost Method

An investment accounting method where the investment is recorded at its acquisition cost, and income is recognized only when dividends are received.

Treasury Stock

Shares that were once a part of the outstanding shares of a company but were bought back and are held by the company itself.