The following information is for questions $6$ and $7$

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 $5\mathrm{.}5$ percent in the short term.

$6.$h 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.

Answer:

What will be the size of the bank if a purchased liquidity management strategy is

adopted?

A$.$ $$9$ million.

B$.$ $$11$ million.

C$.$ $$12$ million.

D$.$ $$14$ million.

E$.$ $$15$ million.

Answer: