The Following Three FIs Dominate a Local Market and Their

question 53

Multiple Choice

The following three FIs dominate a local market and their total assets are given below. $$\begin{array} { | c | r | } \hline \text { Institution } & \text { Asset Size } \\\hline \text { Bank A } & \text { \$50 million } \\\hline \text { Bank B } & \text { \$60 million } \\\hline \text { Bank C } & \text { \$90 million } \\\hline\end{array}$$ If Bank C splits into two separate institutions at ½ its original size each, what is the new Herfindahl-Hirschman (HHI) Index?

• A)60.
• B)340.
• C)2,538.
• D)2,847.
• E)10,000.

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Definitions:

Transmutation Reaction

A nuclear reaction in which the nucleus of an atom changes into a nucleus with a different number of protons, thereby changing one element into another.

Alpha Emitter

A type of radioactive decay in which an unstable atom emits an alpha particle consisting of two protons and two neutrons, thereby reducing its atomic number by 2 and mass number by 4.

Nitrogen

A colorless, odorless, tasteless gas that constitutes approximately 78% of the Earth's atmosphere and is a vital part of living organisms' compounds.

Helium

Helium is a colorless, odorless, tasteless, non-toxic, inert, monatomic gas that heads the noble gas series in the periodic table, with the symbol He and atomic number 2.