$\backslash$table$[[$Assets$,$Liabilities and Equity$],[$Cash Required Reserves,$$2$ million,Deposits,$$8$ million$],[$Loans$,$$$10$ million,Long$-$term Debt,$$2$ million$],[,,$Equity,$$2$ million$],[$Total$,$$$12$ million,Total,$$12$ million$]]$

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.

What will be the cost of using a strategy of reducing its asset base to meet the expected decline in deposits? Assume that the bank intends to keep $$2$ million in cash as a liquidity precaution.

$$10,000$

$$20,000$

$$30,000$

$$50,000$

$$40,000$