The Following Three FIs Dominate a Local Market and Their

question 106

Multiple Choice

The following three FIs dominate a local market and their total assets are given below.
$\begin{array}{lccc} \text {Institution }& \text { Asset Size}\\ \text {Bank A}&\$ 50 \text { million}\\ \text {Bank B}& \$ 60 \text { million}\\ \text {Bank C}&\$ 90 \text { million}\\\end{array}$
If Bank A acquires Bank C,what is the new Herfindahl-Hirschman Index (HHI) ?

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

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