The Following Three FIs Dominate a Local Market and Their

question 17

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 C?

• 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:

Semantic Memory

Semantic memory refers to a portion of long-term memory that processes ideas and concepts that are not drawn from personal experience, such as facts, meanings of words, and general knowledge of the world.

Declarative Memories

Recollections that are accessible to conscious awareness, including information and occurrences.

Nondeclarative Memories

A category of long-term memory that includes skills, tasks, and actions one can perform without consciously thinking about them, such as riding a bicycle.

Implicit Memories

Memories that are acquired and retrieved unconsciously, influencing behaviors and knowledge without deliberate recollection.