PLEASE ITS URGENT,PLEASE ITS URGENT,PLEASE ITS URGENT,

The balance sheet of a bank appears below (all figures in millions of U.S. dollars):

Asset Side

$175 million 30 day Treasury bills

$250 million 91 day Treasury bills

$90 million 180 day municipal notes

$350 million 2 year Treasury notes

Liability Side

$175 million 14 day repurchase agreements

$690 million 1 year commercial paper

What is the spread effect over the next 30 days on the dealer's net interest income if the rate on assets fall by 50 basis points while the same on liabilities fall by 60 basis points?

A

Net interest income will decrease by 1,750,000

B

No effect on net interest income

C

Net interest income will increase by 175,000

D

Net interest income will decrease by 175,000

E

Net interest income will increase by 1,750,000