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Which of the following best completes the passage below? The

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Which of the following best completes the passage below? The [#permalink] New post 23 Aug 2012, 23:47
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90% (01:39) correct 10% (02:10) wrong based on 10 sessions
Which of the following best completes the passage below?
The more worried investors are about losing their money, the more they will demand a high potential return on their investment; great risks must be offset by the chance of great rewards. This principle is the fundamental one in determining interest rates, and it is illustrated by the fact that______
(A) successful investors are distinguished by an ability to make very risky investments without worrying about their money
(B) lenders receive higher interest rates on unsecured loans than on loans backed by collateral
(C) in times of high inflation, the interest paid to depositors by banks can actually be below the rate of inflation
(D) at any one time, a commercial bank will have a single rate of interest that it will expect all of its individual borrowers to pay
(E) the potential return on investment in a new company is typically lower than the potential return on investment in a well-established company
[Reveal] Spoiler: OA

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Re: complete the passage [#permalink] New post 24 Aug 2012, 02:11
PUNEETSCHDV wrote:
Which of the following best completes the passage below?
The more worried investors are about losing their money, the more they will demand a high potential return on their investment; great risks must be offset by the chance of great rewards. This principle is the fundamental one in determining interest rates, and it is illustrated by the fact that______
(A) successful investors are distinguished by an ability to make very risky investments without worrying about their money
(B) lenders receive higher interest rates on unsecured loans than on loans backed by collateral
(C) in times of high inflation, the interest paid to depositors by banks can actually be below the rate of inflation
(D) at any one time, a commercial bank will have a single rate of interest that it will expect all of its individual borrowers to pay
(E) the potential return on investment in a new company is typically lower than the potential return on investment in a well-established company


The conclusion of the passage says : Higher risk --> Higher Gains
Option B directly matches the conclusion hence it is the answer.
option A may have been tempting but was ruled out due to words"without worrying about their money"
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Re: complete the passage   [#permalink] 24 Aug 2012, 02:11
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Which of the following best completes the passage below? The

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