-If Bank 1 Is Acquired by Bank 3, What Is

question 131

Multiple Choice

$$\begin{array} { | c | r | } \hline \text { Bank } & \text { Asset Size } \\\hline 1 & \text { \$100 million } \\\hline 2 & \text { \$200 million } \\\hline 3 & \text { \$500 million } \\\hline\end{array}$$
-If Bank 1 is acquired by Bank 3, what is the impact on the market's HHI?

• A)An increase in the HHI of 1600.
• B)An increase in the HHI of 624.
• C)An increase in the HHI of 1563.
• D)A decrease in the HHI of 222.
• E)A decrease in the HHI of 360.

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Definitions:

Fourth Graders

Students who are in the fourth grade of school, typically around 9 or 10 years old.

ANOVA

Analysis of Variance, a statistical method used to compare the means of three or more samples to find differences.

Research Hypothesis

A statement predicting the relationship between variables in a study, opposing the null hypothesis.

ANOVA

Short for Analysis of Variance, a statistical method used to compare means of three or more samples.