The globalization of financial-services companies has been a boon to

Solution 1

Any time an underlined portion begins with a preposition - especially if some answer choices contain a preposition and some do not - it's likely that the GMAT is testing IDIOMS.

In option B, ‘because of allowing the transfer’ is unidiomatic.
‘because of’ must be followed by a noun.
The command subjunctive applies only when there is some ‘bossiness’ involved. ‘allow’ is clearly not bossy and we don’t need a bossy word here. Therefore, ‘allows that’ doesn’t make sense.

BECAUSE + OF must be followed by a noun only:
Because of you, I never strayed too far from the sidewalks... (remember that song?)

BECAUSE + [no preposition] will be followed by an action - a clause. Compare these two:
I couldn't play kickball because of my sprained ankle.
I couldn't play kickball because I sprained my ankle.
Since we're discussing the action of allowing the transfer of money, we shouldn't use OF. Eliminate A and B.
D contains a violation of subject-verb agreement: "the transfer of money have been placed..."
Between C and E, we have two different idiomatic structures: ALLOW THAT and ALLOW TO. Both of these could be correct, but in different contexts. Option C is unidiomatic.
Correct structure is –
allow X to do Y – infinitive
Structure of option D is incorrect
It allows X have been … Two verbs with no connector
it allows the transfer of money have been placed in a bank

ALLOW THAT is not very common in modern English, though it may still be considered correct by some grammarians. It is used primarily in the context of acknowledgment / belief: "I allow that she is very accomplished" = I admit or acknowledge.
If it's used in the context of permission, it must be used in the command subjunctive:
"... it allows that money... BE transferred..." rather than "is transferred." C is therefore incorrect.

ALLOW ___ TO BE ____ is the much more common version of the idiom. (More common versions of idioms are almost always found in correct answers). The correct answer is E.

The globalization of financial-services companies has been a boon to money launders, because of allowing money placed in a bank in a less regulated jurisdiction to be transferred to a branch in a more regulated one.
A. of allowing money placed in a bank in a less regulated jurisdiction to be transferred - BECAUSE + OF must be followed by a noun only . Since we're discussing the action of allowing the transfer of money, we shouldn't use OF .
B. of allowing the transfer of money placed in a bank in a less regulated jurisdiction - Same as A
C. it allows that money placed in a bank in a less regulated jurisdiction is transferred - It is used primarily in the context of acknowledgment/belief: "I allow that she is very accomplished" = I admit or acknowledge.
If it's used in the context of permission, it must be used in the command subjunctive:
"... it allows that money... BE transferred..." rather than "is transferred." C is therefore incorrect.
D. it allows the transfer of money have been placed in a bank in a less regulated jurisdiction - subject-verb agreement issue - the transfer needs HAS
E. it allows money placed in a bank in a less regulated jurisdiction to be transferred - Correct

Answer E

BECAUSE + [no preposition] will be followed by an action - a clause. Compare these two:
I couldn't play kickball because of my sprained ankle.
I couldn't play kickball because I sprained my ankle.
_________________

What about B, which removes it which might be referring to launderes incorrectly

B is wrong because we do not what allowing mofidies. Launders or globalization. Moreover, we need to tell the reason why The globalization of financial-services companies has been a boon to money launders and it can only be achieved best by a seperate clause...


E fits it well.

E make sense. the strucutre is:

Because + Clause
Because of + Noun Phrase

so A and B donot agree with any of the above structures. only C,D and E meet the first structure. C and D, both, are ungramatical.

It cannot refer to money launderers who are plural, globalization is the only singular noun in the sentence...so i will stick to E

B changed the original meaning of the sentence. I will vote for E as well.

"because" is a conjunction and should be followed by a clause. B has a participial phrase with no verb. Hence, only E is left.

E

A, B out -> because of
C out -> the structre problem
D out -> 'have been placed' is problematic

Himalaya,
Can u plz explain this concept. Doesn't B fit the second structre - Because of + Noun Phrase
S

B is a "because of" construction, not a "because" one, so since it has no verb, it could actually be correct.
please clarify.

OA is E,
Could anybody explain whats wrong with B?
Thanks,

The tense form of underlined sentence is - present perfect - has been. Hence the tense form in underlined word should be - simple present.

From this you can remove answer choices A and B, left with C, D and E. C is awkward and confusing. D has wrong tense form - have been. E meets all the requirements.

Hence the correct answer choice is E.


A. of allowing money placed in a bank in a less regulated jurisdiction to be transferred

B. of allowing the transfer of money placed in a bank in a less regulated jurisdiction
C. it allows that money placed in a bank in a less regulated jurisdiction is transferred
D. it allows the transfer of money have been placed in a bank in a less regulated
jurisdiction
E. it allows money placed in a bank in a less regulated jurisdiction to be transferred

The globalization of financial-services companies has been a boon to money launders, because of allowing money placed in a bank in a less regulated jurisdiction to be transferred to a branch in a more regulated one.
A. of allowing money placed in a bank in a less regulated jurisdiction to be transferred
B. of allowing the transfer of money placed in a bank in a less regulated jurisdiction
C. it allows that money placed in a bank in a less regulated jurisdiction is transferred
D. it allows the transfer of money have been placed in a bank in a less regulated jurisdiction
E. it allows money placed in a bank in a less regulated jurisdiction to be transferred

You can eliminate options A and B, because it says "because of allowing" which is incorrect.

Now, among C, D and E:

C: It allows that money placed in a bank ...... is transferred - This is clearly an awkward construction.
D: "Money have been placed" - This is incorrect sentence structure, on many counts. Even if everything else was right, transfer of money have been placed is awkward, and the use of "have" is incorrect here.
E: This is correct.

This was a simple one.
The answer is definitely E.
A&B- Of allowing is gramatically worong.
C- It allows that id wordy
D- use of have been makes the sentence wrong
E- the bets answer..

The globalization of financial-services companies has been a boon to money launderers, because of allowing money placed in a bank in a less regulated jurisdiction to be transferred to a branch in a more regulated one.

A. of allowing money placed in a bank in a less regulated jurisdiction to be transferred
B. of alowing the transfer of money placed in a bank in a less regulated jurisdiction
C. it allows that money placed in a bank in a less regulated jurisdiction is transferred
D. it allows the transfer of money having been placed in a bank in a less regulated jurisdiction
E. it allows money placed in a bank in a less regulated jurisdiction to be transferred

I would like to discuss what "it" is referring to as used in answer choices C, D and E. Moreover what is wrong with B?
Regards

Per my understanding, "It" refers to "Globalization"...So "Globalization allows money placed in a ......."

B is wrong. Reason is the distinction between "Because of" vs "Because"......"Because of" is a prepositional phrase and must always be followed by a noun or a noun phrase and not a clause. "Because" is followed by a clause. Option B violates this rule.