The Average Duration of the Loans Is 10 Years If at the End of the Year,the Exchange Rate Is

question 6

Multiple Choice

The average duration of the loans is 10 years.The average duration of the deposits is 3 years. $\begin{array}{llr}\text { Consumer loans } & \$ 50 \text { million Deposits } & \$ 235 \text { million } \\\text { Commercial Loans } & \$ 200 \text { million Equity } & \$ 15 \text { million } \\\text { Total Assets } & \$ 250 \text { million Total Liabilities \& Equity } & \$ 250 \text { million }\end{array}$ If at the end of the year,the exchange rate is $1.65/ $\le$ ,what is the spread earned on the loan by the FI in dollars after adjusting fully for exchange rates?

• A)-$3,750,000.
• B)-$1,250,000.
• C)+$1,250,000.
• D)+$3,750,000.

Understand the importance of strategic location clustering for businesses.

Apply center-of-gravity and other quantitative methods to location analysis.

Consider ethical and social responsibilities in location decisions.

Use factor-rating and other models to evaluate location alternatives.

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Definitions:

Goodwill

The positive reputation and relationship a business maintains with its customers, employees, and community, often considered an intangible asset.

Favorable Response

A positive or approving reaction to a query, proposal, or situation.

Logical Order

An arrangement of ideas or elements that follows a coherent sequence, ensuring clarity and enhancing the effectiveness of communication.

Routine Inquiry

A standard or regular request for information, often related to business operations.