The Following Three FIs Dominate a Local Market and Their

question 92

Multiple Choice

The following three FIs dominate a local market and their total assets are given below. $$\begin{array} { | c | r | } \hline \text { Institution } & \text { Asset Size } \\\hline \text { Bank A } & \text { \$50 million } \\\hline \text { Bank B } & \text { \$60 million } \\\hline \text { Bank C } & \text { \$90 million } \\\hline\end{array}$$
-What are the market shares of banks A, B and C, respectively?

• A)25 percent, 45 percent, and 30 percent.
• B)30 percent, 40 percent, and 30 percent.
• C)40 percent, 30 percent, and 30 percent.
• D)25 percent, 30 percent, and 45 percent.
• E)25 percent, 35 percent, and 40 percent.

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Definitions:

Annual Rate

The interest rate for a period of one year, often used to compare the yearly interest between financial products without compounding.

Appreciated

Refers to an increase in the value of an asset over time.

Compounded Semiannually

Interest calculated twice per year, with the first period's interest being added to the principal before the second period's interest is calculated.

Strip Bond

A financial instrument obtained by separating the coupons from the principal of a bond, which then sells each part as a zero-coupon bond.