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.

---

Definitions:

Back Of A Check

The rear face of a check where endorsements are made, including the signature of the recipient, necessary for the check to be cashed or deposited.

Endorsement

The payee’s signature on the back of a check. It is a transfer of title on the check to the bank in exchange for the amount of money on the face of the check.

Record Of A Deposit

Documentation that confirms the placement of money or other valuable goods into a bank account or safekeeping.

Deposit Slip

A paper that goes with a bank deposit, listing the cash and/or checks amount being put into the bank.