If Bank C Agrees to Be Purchased by Banks a and B

question 67

Multiple Choice

If Bank C agrees to be purchased by Banks A and B, what proportion of assets of Bank C should be taken by Banks A and B, respectively in order to have equal post-merger assets?

• A)52 percent and 48 percent.
• B)50 percent and 40 percent.
• C)56 percent and 44 percent.
• D)40 percent and 50 percent.
• E)45 percent and 55 percent.

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Definitions:

Legal/Regulatory

Legal/regulatory refers to the framework of laws, regulations, and guidelines that govern individuals, businesses, and organizations, ensuring compliance and the protection of rights and interests.

Trade Restrictions

Government-imposed limitations on the free exchange of goods and services between countries, such as tariffs, quotas, and embargoes.

Economic

Relating to the economy or the study of how societies use resources to produce and distribute goods and services.

Degree of Rivalry

The intensity of competition among existing competitors in a market.