An FI Finances a $250,000 2-Year Fixed-Rate Loan with a $200,000

Multiple Choice

An FI finances a $250,000 2-year fixed-rate loan with a $200,000 1-year fixed-rate CD.Use the repricing model to determine (a) the FI's repricing (or funding) gap using a 1-year maturity bucket, and (b) the impact of a 100 basis point (0.01) decrease in interest rates on the FI's annual net interest income?

A) $0; $0.
B) -$200,000; +$2,000.
C) -$200,000; -$2,000.
D) +$50,000; -$500.
E) -$200,000; -$1,000.