Bank officers indicate that decreasing rates of loans have dropped to

Just my personal instinct rather than any professed cue from GMAT; I may be even wrong.

I second Daagh : I will go with my gut ie Rate Of

However, If idiomatic usage Rates Of ....... Rates For keeps us baffled and doesn't help us in narrowing down to the final ans

The 2nd split

The intent : Customers are borrowing more........... WHY ?..........What is the reason ?

Guess the Ans to the above is.......... REDUCED RATES / DECREASING RATES

B : REDUCED RATES are the reason for............ (The increase in borrowing)

C : REDUCED RATES are allowing customers to borrow more : guess rates don't allow anything, they might be a cause/reason for increased/ decreased sales/ borrowing ------ Eliminated

Leading to B, my take.

Answer to this Question should be C.

There is a Similar Question in the OG verbal Review ( Old version ). Q no. 76. THE OE clearly states that when Rates means change in price , it is followed by FOR. Therefore RATES FOR is correct and the most C is also the concise than B.

Daagh,
rate-of-vs-rate-for-95013.html
As above link, PFB the usage.
Rate of - frequency
Rates for - Money

Given the context here, we are talking about the interest percentage for loans. So, will that still be rates of or rates for.

this showed up as a kaplan question of the day. here is the official explanation

Answer C - The idiomatic way to express the price of an object when using the word "rates" is "rates for". Choice (A) is incorrect because it uses the expression "rates of". Furthermore, Choice (A) contains a redundancy: "dropped". We already know that rates are decreasing, so the "dropped" is superfluous.

Choice (B) fails to correct the incorrect expression "rates of". Choices (D) and (E) fail to remove the superfluous "dropped".

Only Choice (C) corrects both of the errors in the original sentence. Choice (C) accurately states "rates for" and refrains from being redundant.

Bank officers indicate that decreasing rates of loans have dropped to allow customers to borrow money for cars, education, and holiday gift purchases.

A. rates of loans have dropped to allow
Wrong. decreasing + dropped ==> redundant.

B. rates of loans are a reason for
Wrong.
Please note: Real Gmat prefers rule V-A-N. Thus, verb form is always better than noun form.
==> X are a reason for Y to borrow money ==> Not as good as "X allow Y to borrow money"

C. rates for loans are allowing
Correct.
"Rates for loans" is correct usage. "rate for" is used for money.
Good structure: X allow Y to do Z..... ==> concise and clear.

D. drops in loan rates are allowing
Wrong. decreasing + drop ==> redundant.

E. loan rates have dropped to allow
Wrong. Wrong. decreasing + dropped ==> redundant.

Hope it helps.

First glance - short underline. Notice "rate of" vs "rate for". Also, "to allow" = intent. The rates have did not drop themselves with intent to allow something. Watch out for this.

A. "Rate of loans" = incorrect idiom. Should be "rates for loans". Eliminate.

B. "Rate of loans" = incorrect idiom. Should be "rates for loans". Eliminate.

C. Correct -- "rates for" is the correct idiom and "are allowing" is an acceptable modifier here.

D. "Decreasing drops" is redundant. Eliminate.

E. "to allow" is incorrect here (no intent from the rates). Eliminate.

In C, when it says "rates for loans are allowing", does that read as the illogical meaning that the decreasing rates are allowing? How can a rate allow something? or does that make sense? Thanks!

My opinion: The sentence intends to convey that the customers are borrowing money because there is a reduction in rate of interest for the loans.

Now, "rates for loans are allowing" indicates that the action of reduced rates is allowing the customers to borrow money

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