The Following Three FIs Dominate a Local Market and Their

question 126

Multiple Choice

The following three FIs dominate a local market and their total assets are given below. $$\begin{array} { | c | r | } \hline \text { Institution } & \text { Asset Size } \\\hline \text { Bank A } & \text { \$50 million } \\\hline \text { Bank B } & \text { \$60 million } \\\hline \text { Bank C } & \text { \$90 million } \\\hline\end{array}$$ Under the 1982 guidelines, would the Fed approve the merger of Banks A and B?

• A)It is likely to approve because it is not a concentrated market.
• B)It is unlikely to approve because the post-merger HHI has increased by over 100.
• C)It is likely to approve because the post-merger HHI has increased by over 100.
• D)Likely to approve because the post-merger HHI has increased by less than 5,000.
• E)It is unlikely to approve because the post-merger HHI has increased by an amount over 5,000.

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Definitions:

Maladaptive Explanations

Reasoning or explanations that are not beneficial and may hinder an individual's ability to adapt or cope with situations.

Self-defeating Beliefs

Negative beliefs about oneself that hinder personal development or success.

Unresolved Anger

Persistent feelings of anger or resentment that have not been addressed or expressed, potentially leading to negative emotional and physical outcomes.

Psychoanalytic Perspective

A psychological approach that emphasizes the influence of the unconscious mind on behavior, developed by Freud.