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:

Recognition

The cognitive process of identifying and acknowledging the familiarity of an object, person, or piece of information.

Recall

The mental process of retrieving information from the past.

Preschooler

A child who is in the developmental stage between toddlerhood and school age, typically between the ages of 3 and 5 years.

Random In Nature

Events or processes that occur without a predictable pattern, often described by probability distributions.