The Average Interest Earned on the Loans Is 6 Percent

Multiple Choice

The average interest earned on the loans is 6 percent and the average cost of deposits is 5 percent. Rising interest rates are expected to reduce the deposits by $3 million. Borrowing more debt will cost the bank 5.5 percent in the short term.
-What will be the size of the bank if a stored liquidity management strategy is adopted?

A) $9 million.
B) $11 million.
C) $12 million.
D) $14 million.
E) $15 million.