Under the 1982 guidelines, would the Fed approve the merger of Banks A and B?
A)It is likely to approve because it is not a concentrated market.
B)It is unlikely to approve because the post-merger HHI has increased by over 100.
C)It is likely to approve because the post-merger HHI has increased by over 100.
D)Likely to approve because the post-merger HHI has increased by less than 5,000.
E)It is unlikely to approve because the post-merger HHI has increased by an amount over 5,000.

Question

Quizplus · Accepted Answer

Under the 1982 guidelines, a merger is unlikely to be approved if the post-merger Herfindahl-Hirschman Index (HHI) increases by more than 100 in a concentrated market.

Under the 1982 Guidelines, Would the Fed Approve the Merger