History has shown that severe and sudden political : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 16 Jan 2017, 14:18

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# History has shown that severe and sudden political

Author Message
TAGS:

### Hide Tags

Manager
Joined: 01 Apr 2006
Posts: 183
Followers: 1

Kudos [?]: 96 [0], given: 0

History has shown that severe and sudden political [#permalink]

### Show Tags

26 Aug 2006, 06:42
00:00

Difficulty:

(N/A)

Question Stats:

40% (04:16) correct 60% (01:55) wrong based on 0 sessions

### HideShow timer Statistics

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.
If you have any questions
New!
Current Student
Joined: 29 Jan 2005
Posts: 5238
Followers: 25

Kudos [?]: 376 [0], given: 0

Re: Kaplan800 CR: Political Instability [#permalink]

### Show Tags

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???
VP
Joined: 02 Jun 2006
Posts: 1267
Followers: 2

Kudos [?]: 80 [0], given: 0

### Show Tags

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.

Manager
Joined: 01 Apr 2006
Posts: 183
Followers: 1

Kudos [?]: 96 [0], given: 0

### Show Tags

27 Aug 2006, 18:49
OA is C
Senior Manager
Joined: 03 Dec 2012
Posts: 367
Followers: 0

Kudos [?]: 118 [0], given: 291

Re: History has shown that severe and sudden political [#permalink]

### Show Tags

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
Similar topics Replies Last post
Similar
Topics:
A recent tracking survey has shown 3 23 Jun 2015, 05:52
5 Several studies have shown that individuals 7 05 Jul 2014, 21:45
7 History has shown that severe and sudden political 15 14 Jul 2011, 20:02
Several studies have shown that hospitals are not all 4 22 Apr 2011, 01:52
This is from a Kaplan Test: History has shown that severe 7 08 Jan 2008, 10:07
Display posts from previous: Sort by