The Following Three FIs Dominate a Local Market and Their

question 20

Multiple Choice

The following three FIs dominate a local market and their total assets are given below. If Bank A acquires Bank C, what is the new Herfindahl Index (HHI) ?

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

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Definitions:

Niche Positioning

The strategy of targeting a specific, often small, segment of the market with tailored products or services, aiming to meet unique needs or preferences.

Extreme Sports Themes

The incorporation of extreme sports elements into various contexts, like marketing, to appeal to audiences interested in high-risk activities.

Positioning Statement

A brief description of a product or service and its value proposition, targeted to a specific audience to differentiate it from competitors.

Product Category

A classification of products or services grouped together because of similarities in functionality or customer use.