Figure 30-3
On the following graph, MS represents the money supply and MD represents money demand. 
-Refer to Figure 30-3. Which of the following events could explain a shift of the money-supply curve from MS2 to MS1?
Definitions:
Solvency
The ability of an entity to meet its long-term financial commitments and debts as they come due.
Liquidity
A measure of how quickly and easily an asset can be converted into cash without significantly affecting its price.
Profitability
A measure of the efficiency and success of a business in generating profits from its operations over a period of time.
Horizontal Analysis
A financial analysis technique that examines the changes in the amounts of specific financial statement items over a period of time.
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