A bank has liabilities of $4 million with an average maturity of two years paying interest rates of 4 percent annually. It has assets of $5 million with an average maturity of 5 years earning interest rates of 6 percent annually. To what risk is it exposed?

A)Reinvestment risk

B)Refinancing risk

C)Foreign exchange risk

D)Botha) and b)

E)Both a) and c)