Figure 29-1 ​

question 152

Multiple Choice

Figure 29-1
​
-When interest rates decrease, banks will normally

• A)increase lending, but decrease deposits and the money supply.
• B)increase lending, deposits, and the money supply.
• C)decrease lending, but increase deposits and the money supply.
• D)decrease lending, deposits, and the money supply.

---

Definitions:

Horizontal Financial Statement Analysis

A method of evaluating financial statements to determine their performance over a period by comparing historical figures.

Applied

In accounting and finance, this term refers to the allocation of costs or payments towards specific objectives, accounts, or purposes.

Common-Size Percentages

Financial analysis tools that express each item in a financial statement as a percentage of a base amount, facilitating comparison.

Trend Percentages

Trend percentages are an analytical tool used to examine changes in financial statement items over multiple periods, identifying patterns or shifts in financial performance.