If the Foreign Income Decrease, Then We Might Expect Net

question 102

Multiple Choice

If the foreign income decrease, then we might expect net export spending to:

• A) increase.
• B) decrease.
• C) remain constant.
• D) there is not enough information to determine what would happen.

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Definitions:

Repurchase (Buyback)

The act of a company buying back its own shares from the marketplace, often to reduce the amount of outstanding stock.

Market Price

The price at which a service or asset is currently available for buy or sell transactions.

Intrinsic Value

An underlying or fundamental value. In securities analysis, the price of a security (usually a stock) derived from extensive analysis of the issuing company and its industry. In financial options, the difference between the market price of the underlying stock and the price at which an option on that stock can be exercised (the strike price) if that difference is positive, zero if it is not.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.