21-120 the Use of the Herfindahl-Hirschman Index (HHI)to Measure Bank

question 83

Multiple Choice

21-120 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:

Promotional Mix

A blend of different marketing methods such as advertising, sales promotion, public relations, direct marketing, and personal selling used to achieve specific marketing goals.

Prospective Buyers

Individuals or entities showing interest in purchasing products or services.

Marketing Mix

The blend of product, price, place, and promotion strategies used by a company to market its products or services effectively.

Promotional Mix

The combination of marketing tools used by a company to promote its products or services effectively.