The Following Three FIs Dominate a Local Market and Their

question 42

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 A acquires Bank C, what is the new Herfindahl-Hirschman Index (HHI) ?

• A)60.
• B)100.
• C)5,800.
• D)5,050.
• E)6,525.

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