21-156 If Bank C Agrees to Be Purchased by Banks

question 136

Multiple Choice

21-156 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.

---

Definitions:

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes infinitely in response to any change in price, typically represented with a horizontal demand or supply curve.

Relatively Inelastic

A term used to describe a situation where the demand or supply for a good or service is less responsive to changes in price.

Total Revenue

The total income that a company receives from its normal business activities, usually from the sale of goods and services to customers.

Inelastic Demand

A situation where the quantity demanded of a good or service changes little when its price changes.