The Bank Lending Channel

question 2

Multiple Choice

The bank lending channel

• A)emphasizes the role of interest rates in the money supply process.
• B)emphasizes the importance of borrowers' net worth to the decision of lenders to grant loans.
• C)emphasizes the behavior of bank-dependent borrowers.
• D)is another name for the money channel.

---

Definitions:

Dividends Paid

Money distributed to shareholders out of a corporation's earnings as a return on investment.

Indirect Method

A cash flow statement presentation that starts with net income and adjusts for non-cash transactions, often used in financial reporting.

Net Cash Provided

The amount of money generated by a company's operations after accounting for all cash outflows and inflows within a specified period.

Accounts Receivable

Amounts that clients owe a company for goods or services provided but for which payment has not yet been made.