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History has shown that severe and sudden political

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History has shown that severe and sudden political [#permalink] New post 26 Aug 2006, 06:42
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History has shown that severe and sudden political instability strikes the Republic of Balanda roughly once every 50 years. The most recent example was the attempt on the president's life in 1992. The reaction of average investors in Balanda to crisis situations in the country cannot be predicted in advance. The government's fiscal affairs department has introduced an electronic protection mechanism into the market in the hopes of avoiding a prolonged large-scale selloff. The mechanism is triggered in specific instances based on estimations of how average investors will react to changes in corporate data and economic indicators.

If the statements above are true, which of the following conclusions can be drawn regarding the electronic protection mechanism?

(a) Sometime within the next 50 years sever and sudden political instability in Balanda will trigger the protection mechanism.
(b) Whether the protection mechanism will function appropriately in response to a sudden political event depends on whether the event is seen by investors as positive or negative.
(c) It is unclear how well the protection mechanism would work in the event of a sudden political coup if such an event were partially or wholly unrelated to changes in corporate data and economic indicators.
(d) There would be no way for the protection mechanism to differentiate between the market fluctuations resulting from economic factors and those that are caused by political instability.
(e) The protection mechanism would be purposely destroyed by political insurgents if they were able to infiltrate the govenment's fiscal affairs department.
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Re: Kaplan800 CR: Political Instability [#permalink] New post 26 Aug 2006, 07:14
jjhko wrote:
History has shown that severe and sudden political instability strikes the Republic of Balanda roughly once every 50 years. The most recent example was the attempt on the president's life in 1992. The reaction of average investors in Balanda to crisis situations in the country cannot be predicted in advance. The government's fiscal affairs department has introduced an electronic protection mechanism into the market in the hopes of avoiding a prolonged large-scale selloff. The mechanism is triggered in specific instances based on estimations of how average investors will react to changes in corporate data and economic indicators.

If the statements above are true, which of the following conclusions can be drawn regarding the electronic protection mechanism?

(a) Sometime within the next 50 years sever and sudden political instability in Balanda will trigger the protection mechanism. ---> HUGE assumption. NOPE.
(b) Whether the protection mechanism will function appropriately in response to a sudden political event depends on whether the event is seen by investors as positive or negative. ---> The passage states "how the investors will react, but mention anything about +/- " NOPE
(c) It is unclear how well the protection mechanism would work in the event of a sudden political coup if such an event were partially or wholly unrelated to changes in corporate data and economic indicators. Yes, these changes might not be directly linked to the factors/sensors that would trigger the alarm.
(d) There would be no way for the protection mechanism to differentiate between the market fluctuations resulting from economic factors and those that are caused by political instability. ---> Extreme phrasing. Somebody once said there is no way to score an 800 on the GMAT, but it has been done.
(e) The protection mechanism would be purposely destroyed by political insurgents if they were able to infiltrate the govenment's fiscal affairs department. HAHAHAHAHHAHA!!


Love these CRs... Keep em coming. Let's tear them apart. Where's U2 Lover???
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 [#permalink] New post 26 Aug 2006, 07:23
(c) It is unclear how well the protection mechanism would work in the event of a sudden political coup if such an event were partially or wholly unrelated to changes in corporate data and economic indicators.

This was a tricky one... didn't realize the last two words of the stem say "corporate data and economic indicators" until I read the conclusion the second time.

Answer: C
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 [#permalink] New post 27 Aug 2006, 18:49
OA is C :)
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Re: History has shown that severe and sudden political [#permalink] New post 10 Oct 2013, 19:37
Its C. Was pretty tricky. For me the key words were specific instances and estimations that means that the functioning of the mechanism would be obscure.
Re: History has shown that severe and sudden political   [#permalink] 10 Oct 2013, 19:37
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