The Use of the Herfindahl-Hirschman Index (HHI) to Measure Bank

question 32

Multiple Choice

The use of the Herfindahl-Hirschman Index (HHI) to measure bank concentration has been criticized because

• A)ascertaining whether the relevant geographic scope of the market should be regional, national, or city is becoming increasingly difficult to determine.
• B)the index was originally designed for nonfinancial competition.
• C)separating financial markets into banks, thrifts, and insurance companies is becoming increasingly difficult to justify.
• D)All of the above.
• E)Answers A and C only.

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Definitions:

Seizure Disorder

a medical condition characterized by episodes of uncontrolled electrical activity in the brain, leading to changes in behavior, movements, or consciousness.

Aura

A sensory experience or perception (such as flashing lights, tingling, or a peculiar smell) that precedes and signals the onset of a specific condition, often a migraine or seizure.

Muscle Tone

The continuous and passive partial contraction of the muscles, or the muscle's resistance to passive stretch during resting state.

Mediating Reflexes

Reflex actions that are controlled by the nervous system, serving as an immediate response to a specific stimulus.