When do banks generally ease up their lending guidelines?

when there is an increase in inflation rates but a decrease in the amount of money in circulation
when there is a decrease in interest rates and an increase in the amount of money in circulation
when there is a decrease in interest rates and a decrease in the amount of money in circulation
when there is an increase in interest rates but a decrease in the amount of money in circulation

Banks generally ease up their lending guidelines when there is a decrease in interest rates and an increase in the amount of money in circulation.