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Manager
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Since savings banks have to use short-term deposits to [#permalink]
 11 Jan 2005, 21:50
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0% (00:00) correct
 0% (00:00) wrong based on 0 sessions
Since savings banks have to use short-term deposits to finance long-term fixed-rate mortgage loans, they sometimes lose money when there is a rise in short-term rates and, on the other hand, they are unable to raise the rates on their mortgages.
(A) when there is a rise in short-term rates and, on the other hand, they are unable to raise
(B) when short-term rates rise and they are unable to raise
(C) when a rise in short-term rates occurs and, correspondingly, there is no rise possible in
(D) with a rise in short-term rates, and they are unable to raise
(E) with short-term rates on the rise and no rise possible in
Highlight below for OA.
B
Last edited by prasad_bgv on 12 Jan 2005, 10:11, edited 1 time in total.
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Manager
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I think it id D.
This is because the words "they sometimes lose money with a rise in short term rates" is one clause and the conjunction "and" joins it with the rest of the sentence.
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Director
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B) use of when indicates time whereas with in D does not
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Director
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can somebody explain why each choice is wrong or correct?
S
_________________
Regards, S
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Intern
Joined: 19 Jun 2005
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When is required. A, B , C remain
In A : "there is a rise " is the right usage
In C : Wordy, sentence should indicate that banks are not able to raise.
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GMAT Club Legend
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We need 'when' to indicate the time the short term rates rise. D,E --> out
A,C have awkward and lengthy phrasing.
B is the best choice.
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