-Which of the Following Best Describes the Diagram of Figure

question 53

Multiple Choice

-Which of the following best describes the diagram of Figure ?

• A)The demand for loanable funds increased. This, in turn, increased the interest rate and the supply of loanable funds.
• B)The demand for loanable funds increased. This, in turn, increased the interest rate and the quantity supplied of loanable funds.
• C)The supply of loanable fund increased. In turn, interest rates increased.
• D)Interest rates increased, causing the demand of loanable funds to increase.

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Definitions:

Goodwill

A non-physical asset that is recognized when one business purchases another at a price higher than the combined fair market value of its physical and recognizable non-physical assets.

Bonds Payable

A liability companies incur when issuing debt securities to investors, repayable at a future date.

Fair Value

An estimation of the price at which an asset or liability could be traded in an orderly transaction between knowledgeable, willing parties.

Unrealized Profits

Profits that have been generated on paper through an investment's increased value but have not yet been realized through a sale.