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

Question 91

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The average duration of the loans is 10 years.The average duration of the deposits is 3 years.  Consumer loans $50 million Deposits $235 million  Commercial Loans $200 million Equity $15 million  Total Assets $250 million Total Liabilities & Equity $250 million \begin{array}{llr}\text { Consumer loans } & \$ 50 \text { million Deposits } & \$ 235 \text { million } \\\text { Commercial Loans } & \$ 200 \text { million Equity } & \$ 15 \text { million } \\\text { Total Assets } & \$ 250 \text { million Total Liabilities \& Equity } & \$ 250 \text { million }\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.

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