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# Since it has become known that several of a bank's top

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Since it has become known that several of a bank's top [#permalink]

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19 Jul 2012, 10:13
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Since it has become known that several of a bank's top executives have been buying shares in their own bank, the bank's depositors, who had been worried by rumors that the bank faced impending financial collapse, have been greatly relieved. They reason that, since top executives evidently have faith in the bank's financial soundness, those worrisome rumors must be false. Such reasoning might well be overoptimistic, however, since corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health.

In the argument given, the two boldfaced portions play which of the following roles?

(A) The first describes evidence that has been taken as supporting a conclusion; the second gives a reason for questioning that support.
(B) The first describes evidence that has been taken as supporting a conclusion; the second states a contrary conclusion that is the main conclusion of the argument.
(C) The first provides evidence in support of the main conclusion of the argument; the second states that conclusion.
(D) The first describes the circumstance that the argument as a whole seeks to explain; the second gives the explanation that the argument seeks to establish.
(E) The first describes the circumstance that the argument as a whole seeks to explain; the second provides evidence in support of the explanation that the argument seeks to establish.
[Reveal] Spoiler: OA

Last edited by betterscore on 20 Jul 2012, 12:41, edited 1 time in total.
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Re: Since it has become known that several of a bank's [#permalink]

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19 Jul 2012, 14:02
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betterscore wrote:
Since it has become known that several of a bank's top executives have been buying shares in their own bank, the bank's depositors, who had been worried by rumors that the bank faced impending financial collapse, have been greatly relieved. They reason that, since top executives evidently have faith in the bank's financial soundness, those worrisome rumors must be false. Such reasoning might well be overoptimistic, however, since corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health.

In the argument given, the two boldfaced portions play which of the following roles?

(A) The first describes evidence that has been taken as supporting a conclusion; the second gives a reason for questioning that support.
(B) The first describes evidence that has been taken as supporting a conclusion; the second states a contrary conclusion that is the main conclusion of the argument.
(C) The first provides evidence in support of the main conclusion of the argument; the second states that conclusion.
(D) The first describes the circumstance that the argument as a whole seeks to explain; the second gives the explanation that the argument seeks to establish.
(E) The first describes the circumstance that the argument as a whole seeks to explain; the second provides evidence in support of the explanation that the argument seeks to establish.

My Answer is (A) because the 2nd bold face is contrary statement to the conclusion, which the argument is trying to establish.
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Last edited by Capricorn369 on 23 Jul 2012, 12:28, edited 2 times in total.
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Re: Since it has become known that several of a bank's top [#permalink]

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23 Jul 2012, 00:50
betterscore wrote:
Since it has become known that several of a bank's top executives have been buying shares in their own bank, the bank's depositors, who had been worried by rumors that the bank faced impending financial collapse, have been greatly relieved. They reason that, since top executives evidently have faith in the bank's financial soundness, those worrisome rumors must be false. Such reasoning might well be overoptimistic, however, since corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health.

In the argument given, the two boldfaced portions play which of the following roles?

(A) The first describes evidence that has been taken as supporting a conclusion; the second gives a reason for questioning that support.
(B) The first describes evidence that has been taken as supporting a conclusion; the second states a contrary conclusion that is the main conclusion of the argument.
(C) The first provides evidence in support of the main conclusion of the argument; the second states that conclusion.
(D) The first describes the circumstance that the argument as a whole seeks to explain; the second gives the explanation that the argument seeks to establish.
(E) The first describes the circumstance that the argument as a whole seeks to explain; the second provides evidence in support of the explanation that the argument seeks to establish.

Seems like D to me.

The reasoning is that:

The conclusion of the argument is that the reasoning is over optimistic. So A, B & C can be eliminated. And between D & E, D seems to be the right answer.

Can someone provide explanation as to how A is the right answer.??
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Re: Since it has become known that several of a bank's top [#permalink]

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23 Jul 2012, 03:26
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I chose (D) but why not (A)?

(A) The first describes evidence that has been taken as supporting "a conclusion"; the second gives a reason for questioning that support.

the first boldface is an explanation why bank's depositors are relieved and this could be thought as supporting "a conclusion" that they are relieved. The second is an alternative reason why they should not be so relieved (reason why they might be thought to be "overoptimistic"), therefore it is questioning the support.
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Re: Since it has become known that several of a bank's top [#permalink]

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23 Jul 2012, 07:31
I too chose D. But there are two conclusions here for sure. For overall conclusion of "overoptimistic" option D seems right but for intermediate conclusion A seem right.
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Re: Since it has become known that several of a bank's top [#permalink]

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24 Jul 2012, 11:13
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I found A as correct answer

Reasoning-->Top executive of bank buys share--> why because he thinks bank is financially sound
top executive of corporate companies buys share-->to dispel negative rumors about company health
Second boldface call first boldface into question --- what if top bank executive is also acting like a corporate company executive ?
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Re: Since it has become known that several of a bank's top [#permalink]

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24 Jul 2012, 11:29
Guess you misunderstood. The second bold face is a general statement about corporate executives and applies to bank's executives as well.
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Re: Since it has become known that several of a bank's top [#permalink]

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24 Jul 2012, 16:28
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tried this question for the second time and came up with (A) as the answer.

as for choice (D):
(D) The first describes the circumstance that the argument as a whole seeks to explain; the second gives the explanation that the argument seeks to establish.
=> the argument as a whole is not seeking to explain the first boldface, namely several of a bank's top executives have been buying shares in their own bank
but instead is trying to refute the claim that rumors about impending financial collapse of the bank must be false.
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Re: Since it has become known that several of a bank's top [#permalink]

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24 Jul 2012, 19:31
aramisLab wrote:
tried this question for the second time and came up with (A) as the answer.

as for choice (D):
(D) The first describes the circumstance that the argument as a whole seeks to explain; the second gives the explanation that the argument seeks to establish.
=> the argument as a whole is not seeking to explain the first boldface, namely several of a bank's top executives have been buying shares in their own bank
but instead is trying to refute the claim that rumors about impending financial collapse of the bank must be false.

This is a tough question. I agree with you on your reasoning to choose D. The second part doesn't try to establish an explanation, it is trying to refute the previous claim.
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Re: Since it has become known that several of a bank's top [#permalink]

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24 Jul 2012, 20:08
divyakesharwani wrote:
Guess you misunderstood. The second bold face is a general statement about corporate executives and applies to bank's executives as well.

I don't think that the second boldface is a general statement. Rather, it tries to refute the first claim. I think it is a better idea to put the second boldface into the whole context of the question stem.
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Re: Since it has become known that several of a bank's top [#permalink]

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12 Aug 2012, 08:26
Hi,
Can someone pls clarify my below doubts

(A) The first describes evidence that has been taken as supporting a conclusion; the second gives a reason for questioning that support.

I know that the second bold face statement is a premise used in support of the main conclusion of the argument that the author seeks to establish i.e. "The reasoning given to dispel fears might be over optimistic". But how does second statement i.e colored one in question stem relates to my reasoning.

Also, can someone please explain in detail as to why choice D is wrong.
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12 Aug 2012, 09:01
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D is wrong because the second DOESN'T give the explanation that the argument seeks to establish. The second gives a reason for questioning that support
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13 Aug 2012, 08:47
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Clear A , for boldface questions I found to go through the following steps -->

1) Identify the main conclusion of the passage , then see what part does bold face plays in the conclusion.
2) Identify the tone of the parts , generally its easy to discard some options on this basis.
Example -->
several of a bank's top executives have been buying shares in their own bank and
corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health

These two are opposite in tones so one can decide on that. In this question all the answer choices except A and B have the two parts in same tone.

Now among A and B , B states for second part that its the main conclusion which it is not cause the main conclusion is

since top executives evidently have faith in the bank's financial soundness, those worrisome rumors must be false

Hence A prevails
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Re: Since it has become known that several of a bank's top [#permalink]

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13 Aug 2012, 22:18
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Since it has become known that several of a bank's top executives have been buying shares in their own bank, the bank's depositors, who had been worried by rumors that the bank faced impending financial collapse, have been greatly relieved. They reason that, since top executives evidently have faith in the bank's financial soundness, those worrisome rumors must be false. Such reasoning might well be overoptimistic, however, since corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health.

In the argument given, the two boldfaced portions play which of the following roles?

(A) The first describes evidence that has been taken as supporting a conclusion; the second gives a reason for questioning that support.
(B) The first describes evidence that has been taken as supporting a conclusion; the second states a contrary conclusion that is the main conclusion of the argument.
(C) The first provides evidence in support of the main conclusion of the argument; the second states that conclusion.
(D) The first describes the circumstance that the argument as a whole seeks to explain; the second gives the explanation that the argument seeks to establish.
(E) The first describes the circumstance that the argument as a whole seeks to explain; the second provides evidence in support of the explanation that the argument seeks to establish.

Responding to a pm:

Conclusion of the argument: Such reasoning might well be overoptimistic

First statement: several of a bank's top executives have been buying shares in their own bank, - evidence supporting 'depositors have been greatly relieved'

Second statement: corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors - evidence supporting 'reasoning is overoptimistic'. This sentence questions the evidence of the first sentence. So, executives are buying shares in their own bank - well, they have been known to do that. It is a calculated step.

So the first bold sentence gives support to the conclusion that investors are relieved. But the second bold sentence questions this support and hence gives support to 'they probably shouldn't be relieved'.

As for (D), I don't think it makes much sense to me at all.

Let's look at it in detail:

The first describes the circumstance that the argument as a whole seeks to explain - the entire argument is explaining a circumstance. The first bold statement itself is not doing it. It only explains why people are relieved - the conclusion which the argument questions.

the second gives the explanation that the argument seeks to establish. - the explanation that the argument would establish would be the conclusion endorsed by the argument. The second statement is a premise, not a conclusion endorsed by the argument.
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Get started with Veritas Prep GMAT On Demand for $199 Veritas Prep Reviews Intern Joined: 19 Dec 2011 Posts: 21 Followers: 0 Kudos [?]: 9 [0], given: 37 Re: Since it has become known that several of a bank's top [#permalink] ### Show Tags 14 Aug 2012, 23:25 Since it has become known that several of a bank's top executives have been buying shares in their own bank, the bank's depositors, who had been worried by rumors that the bank faced impending financial collapse, have been greatly relieved. They reason that, since top executives evidently have faith in the bank's financial soundness, those worrisome rumors must be false. Such reasoning might well be overoptimistic, however, In the argument given, the two boldfaced portions play which of the following roles? (A) The first describes evidence that has been taken as supporting a conclusion; the second gives a reason for questioning that support. since corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health. I think Conclusion : Those worrisome rumours must be false . Questioning the conclusion : Such reasoning might well be overoptimistic. Reasoning the Questioning of the conclusion : since corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health. Hence A is the answer Director Joined: 03 Aug 2012 Posts: 916 Concentration: General Management, General Management GMAT 1: 630 Q47 V29 GMAT 2: 680 Q50 V32 GPA: 3.7 WE: Information Technology (Investment Banking) Followers: 23 Kudos [?]: 696 [0], given: 322 Re: Since it has become known that several of a bank's top [#permalink] ### Show Tags 15 Jan 2013, 10:01 Folks, People are accepting that conclusion is :Such reasoning might well be overoptimistic Then how A,B,C could be answers. Plz anyone can elaborate reasoning behind A if the above mentioned is the conclusion. Rgds, Saurabh _________________ Rgds, TGC! _____________________________________________________________________ I Assisted You => KUDOS Please _____________________________________________________________________________ Last edited by TGC on 15 Jan 2013, 10:12, edited 1 time in total. Director Joined: 03 Aug 2012 Posts: 916 Concentration: General Management, General Management GMAT 1: 630 Q47 V29 GMAT 2: 680 Q50 V32 GPA: 3.7 WE: Information Technology (Investment Banking) Followers: 23 Kudos [?]: 696 [0], given: 322 Re: Since it has become known that several of a bank's top [#permalink] ### Show Tags 15 Jan 2013, 10:11 After giving two more minutes to this beautiful argument , here is my reasoning Since it has become known that several of a bank's top executives have been buying shares in their own bank, the bank's depositors, who had been worried by rumors that the bank faced impending financial collapse, have been greatly relieved. They reason that, since top executives evidently have faith in the bank's financial soundness, those worrisome rumors must be false. If X is true,Y MUST Be False. (X is premise here and Y is conclusion) Such reasoning might well be overoptimistic, however, since corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health. Reasoning MIGHT Well be OverOptimistic. (Well I consider it to be a author's belief and not the conclusion) (A) justifies the above reasoning. Plz correct me if I am going to unrelated area. Rgds, Saurabh _________________ Rgds, TGC! _____________________________________________________________________ I Assisted You => KUDOS Please _____________________________________________________________________________ Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 7130 Location: Pune, India Followers: 2140 Kudos [?]: 13706 [0], given: 222 Re: Since it has become known that several of a bank's top [#permalink] ### Show Tags 15 Jan 2013, 19:18 targetgmatchotu wrote: Folks, People are accepting that conclusion is :Such reasoning might well be overoptimistic Then how A,B,C could be answers. Plz anyone can elaborate reasoning behind A if the above mentioned is the conclusion. Rgds, Saurabh There are two different conclusions here: A conclusion: Depositors are relieved - belief of people in general The argument gives the reasons they are relieved. Main conclusion of the argument - this is the author's belief - 'Such reasoning might well be overoptimistic' The author gives the reasons why this reasoning may be overoptimisitic. (A) states 'The first describes evidence that has been taken as supporting a conclusion' It doesn't say that it supports the 'main conclusion'. (C) says that 'The first provides evidence in support of the main conclusion of the argument' This is certainly incorrect. _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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Re: Since it has become known that several of a bank's top [#permalink]

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Since it has become known that several of a bank's top executives have been buying shares in their own bank, the bank's depositors, who had been worried by rumors that the bank faced impending financial collapse, have been greatly relieved. They reason that, since top executives evidently have faith in the bank's financial soundness, those worrisome rumors must be false. Such reasoning might well be overoptimistic, however, since corporate executives have been known to buy shares in their own company in a calculated attempt to dispel negative rumors about the company's health.

In the argument given, the two boldfaced portions play which of the following roles?

(A) The first describes evidence that has been taken as supporting a conclusion; the second gives a reason for questioning that support.
(B) The first describes evidence that has been taken as supporting a conclusion; the second states a contrary conclusion that is the main conclusion of the argument.
(C) The first provides evidence in support of the main conclusion of the argument; the second states that conclusion.
(D) The first describes the circumstance that the argument as a whole seeks to explain; the second gives the explanation that the argument seeks to establish.
(E) The first describes the circumstance that the argument as a whole seeks to explain; the second provides evidence in support of the explanation that the argument seeks to establish.

Let’s begin dissecting. The conclusion is ‘Such reasoning might be overoptimistic’. So the second boldface is actually the premise. Now I’m not 100% sure what the first boldface is. But I’m pretty sure that the second one is the premise. So let’s start eliminating answer choices that say otherwise. ‘B’ says that the second is a conclusion. This is clearly not the case. ‘C’ also says that the second boldface is a conclusion, when we have already identified it as a premise. ‘D’ says that the second gives the explanation that the argument seeks to establish. This sounds as if it were the conclusion too. So this doesn’t fit the bill either. Now ‘E’ says that the second provides evidence in support. This sounds like a premise so I’ll keep it. Now between ‘A’ and ‘E’ we will have to check what the first boldface might mean. ‘A’ says that the first bold is ‘a premise that supports A conclusion’. Not necessarily the ‘main conclusion’, whilst ‘E’ is saying that it is A conclusion, not a premise. The first boldface is clearly a premise. They have been relieved, why? Because executives have been buying shares. So ‘A’ is the correct answer.

This question is in fact very difficult because it is based on your ability to distinguish among premises and conclusion. Note that the stimulus contains all of these: counterpremise, counterconclusion, premise and conclusion. By using the ‘why’ technique we can easily differentiate between premises and conclusions. Another key takeaway is to be aware of the phrase ‘A conclusion’ and be able to consider that there may be more than one conclusion in a stimulus.

Hope it helps
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Re: Since it has become known that several of a bank's top [#permalink]

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16 Apr 2014, 05:42
OA?
What is the official answer? A?
Why not B?
Re: Since it has become known that several of a bank's top   [#permalink] 16 Apr 2014, 05:42

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