2
QuizMultiple Choice

Exponential Functions and Financial Literacy — Quiz

Question 2 • Advanced Financial Algebra

If the graph of an exponential function does not cross the x -axis, what does this imply about the asymptote?

Answer
A
It has a horizontal asymptote at y is equal to 0.
B
It has no asymptote.
C
It has a vertical asymptote.
D
It has a horizontal asymptote at y is equal to 1.

Explanation

An exponential function of the form y = a·b^x has outputs that approach 0 in one direction but never reach 0, so its graph does not cross the x-axis. This means the x-axis, y = 0, is its horizontal asymptote. The correct choice is “It has a horizontal asymptote at y is equal to 0.”

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