The local banking industry currently has a Herfindahl-Hirschman index (HHI) value of 1575 and two of the competing banks have considered merging. Because the merger would raise the HHI by 55 points, the Federal Trade Commission would likely
A) challenge the merger.
B) not challenge the merger.
C) allow the merger under the condition that HHI does not rise by more than 55 points as promised.
D) allow the merger under the condition that the HHI remain at the premerger level of 1575.
B
Economics
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A financial institution that accepts deposits and makes loans is generally referred to as a(n)
A) central bank. B) commercial bank. C) monetary authority. D) investment bank.
Economics
One negative consequence of regulatory competition is:
A. financial institutions often seek out the most lenient regulator. B. it minimizes competition. C. it is expensive. D. financial institutions are over regulated at a cost to customers.
Economics