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Question
There are three banks in East Panhandle. First State Bank which currently has 25 percent of the deposits, Second State Bank which currently has 40 percent of the deposits and Third State Bank which has the rest. Compute the share of the Third State Bank in the market. Suppose First State Bank and Third State Bank propose to merge in order to compete with Second State Bank. According to the Department of Justice Guidelines, would this merger be allowed?
A. Very likely
B. Likely, but with certain regulatory restrictions
C. Highly unlikely
D. Not enough information to make the determination
E. None of the options is correct
Answer
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