Refer to the Following Graph to Answer the Following Questions

question 139

Multiple Choice

Refer to the following graph to answer the following questions:
-Assuming the figure represents the market for loanable funds,it would be true that

• A) the vertical axis represents the amount of savings,and the horizontal axis represents the amount of borrowing.
• B) the vertical axis represents the interest rate,and the distance between points C and D represents the surplus of loanable funds at interest rate A.
• C) the horizontal axis represents the interest rate,and the distance between points C and D represents the shortage of loanable funds.
• D) the vertical axis represents the interest rate,and the distance between points C and D represents the shortage of loanable funds at interest rate A.
• E) line 1 represents the interest rate,and line 2 represents the quantity of savings.

---

Definitions:

Expected Return

Expected return is the anticipated amount of profit or loss an investment generates, based on historical data or probabilistic estimates.

Pension Trustee

An individual or a corporate entity that holds and manages the assets of a pension fund on behalf of the participants.

Journal Entries

The method used in accounting to record each financial transaction of a company, represented by debits and credits in the financial records.

Pension Expense

The cost recognized by an employer in a defined benefit pension plan for the estimated obligations as well as services provided by employees during the current period.