The size of the bank, in this context, refers to the total assets of the bank. When a bank uses a liability management strategy to fund loans, it essentially borrows money to lend it out. This increases the bank's liabilities (as it now owes money to the entity it borrowed from) and its assets (as it now has the loan it gave out as an asset). In this case, the loan officer wants to make $400 million in loans. This would increase the bank's total assets by $400 million, from $4,920 million to $5,320 million. Therefore, the size of the bank would increase.

Choice B is incorrect. A decrease in the overall size of Loud Bank would imply a reduction in its assets, liabilities, or both. However, implementing a liability management strategy to fund loans would involve increasing the bank's liabilities (through borrowing or issuing more equity), which would then be used to increase its assets (by providing more loans). Therefore, this strategy would not lead to a decrease in the bank's overall size.

Choice C is incorrect. No change in the overall size of Loud Bank implies that its total assets and total liabilities remain constant. However, as explained above, implementing a liability management strategy involves increasing both these components of the balance sheet - hence there will be an increase rather than no change.

Choice D is incorrect. The information provided about Loud Bank's current financial situation and proposed strategy is sufficient to establish that implementing a liability management strategy will result in an increase in the bank's overall size.