Suppose the Federal Reserve Is Considering the Applications of Four

question 94

Multiple Choice

Suppose the Federal Reserve is considering the applications of four different banks to merge with other banks.Given the level of the new HHI and the change in the HHI shown below, in which case could the Fed challenge the merger?

• A)New HHI = 1,900; change in HHI = 150
• B)New HHI = 1,500; change in HHI = 400
• C)New HHI = 1,200; change in HHI = 700
• D)New HHI = 1,850; change in HHI = 250

---

Definitions:

Gerald Corey

A prominent author and professor in the field of psychology known for his work in counselling and psychotherapy.

Crisis Intervention

A method of immediate, short-term assistance to individuals experiencing an event that produces emotional, mental, physical, and behavioral distress.

Gerald Caplan

A pioneering figure in community mental health, Caplan is well-known for his contributions to mental health prevention and crisis intervention.

Traumatic Events

Incidents that cause psychological, physical, emotional, or spiritual distress, often leading to lasting impacts on an individual's well-being and mental health.