The Average Duration of the Loans Is 10 Years If the Exchange Rate Remains the Same, What Is the Duration

Multiple Choice

The average duration of the loans is 10 years.The average duration of the deposits is 3 years. $$\begin{array} { | l | r | l | r | } \hline \text { Consumer loans } & \$ 50 \text { million } & \text { Deposits } & \$ 235 \text { million } \\\hline \text { Commercial Loans } & \$ 200 \text { million } & \text { Equity } & \$ 15 \text { million } \\\hline \text { Total Assets } & \$ 250 \text { million } & \text { Total Liabilities \& Equity } & \$ 250 \text { million } \\\hline\end{array}$$ If the exchange rate remains the same, what is the dollar spread earned by the bank at the end of the year?

A) $750,000.
B) $1,000,000.
C) $1,250,000.
D) $1,600,000.
E) $1,750,000.