Refer to the Following Graph to Answer the Following Questions

question 108

Multiple Choice

Refer to the following graph to answer the following questions:
-In the figure,at an interest rate of 6 percent,the

• A) quantity demanded of loanable funds equals the quantity supplied of loanable funds,and equilibrium is reached.
• B) quantity demanded of loanable funds is greater than the quantity supplied of loanable funds,and there is a surplus of loanable funds.
• C) demand for loanable funds is greater than the supply of loanable funds,and there is a shortage of loanable funds.
• D) quantity demanded of loanable funds is greater than the quantity supplied of loanable funds,and there is a shortage of loanable funds.
• E) quantity demanded of loanable funds is less than the quantity supplied of loanable funds,and there is a surplus of loanable funds.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Income Summary

An account used in the closing process that summarizes the revenues and expenses for a specific accounting period before transferring the net income to retained earnings.

Net Income

Final earnings of a corporation post deductions of expenses and taxes from its aggregate revenue.

Revenues

Income generated from normal business operations, including sales of goods and services, fees, commissions, and other sources.