Find all School-related info fast with the new School-Specific MBA Forum

 It is currently 27 Aug 2016, 01:36

### 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

# Which of the following most logically completes the argument

Author Message
TAGS:

### Hide Tags

SVP
Joined: 04 May 2006
Posts: 1926
Schools: CBS, Kellogg
Followers: 21

Kudos [?]: 860 [0], given: 1

Which of the following most logically completes the argument [#permalink]

### Show Tags

13 May 2008, 21:04
00:00

Difficulty:

(N/A)

Question Stats:

100% (01:47) correct 0% (00:00) wrong based on 2 sessions

### HideShow timer Statistics

27.
Which of the following most logically completes the argument below?

When interest rates are high, insurance companies reduce the premiums they charge for many kinds of insurance policies. The reason is that insurance companies want to take in as much money as possible in premiums so that they can invest the money at high rates of interest. And premium reductions help achieve this objective, since __________.

(A) interest rates are likely to decrease when large amounts of money are available for loans
(B) smaller insurance companies are not able to amass enough money to take advantage of investing at high interest rates
(C) insurance companies can sell many more insurance policies if they charge lower premiums than they would if they left premiums unchanged
(D) an increase in the number of policies sold eventually leads to an increase in the number of claims that an insurance company has to pay
(E) the number of claims that insurance companies pay increases at a higher rate than does the number of policies that the insurance companies can sell at the lower premiums
_________________
Director
Joined: 01 Jan 2008
Posts: 513
Followers: 3

Kudos [?]: 49 [0], given: 0

### Show Tags

13 May 2008, 21:34
C...
SVP
Joined: 28 Dec 2005
Posts: 1575
Followers: 3

Kudos [?]: 130 [0], given: 2

### Show Tags

14 May 2008, 04:44
i also say C
Manager
Joined: 27 Jul 2007
Posts: 115
Followers: 1

Kudos [?]: 7 [0], given: 0

### Show Tags

14 May 2008, 05:33
Straight C
Director
Joined: 06 Jan 2008
Posts: 554
Followers: 2

Kudos [?]: 288 [0], given: 2

### Show Tags

14 May 2008, 08:02
C for me.
Argument was a little tough but choices are easy.
VP
Joined: 10 Jun 2007
Posts: 1459
Followers: 7

Kudos [?]: 227 [0], given: 0

### Show Tags

14 May 2008, 08:20
sondenso wrote:
27.
Which of the following most logically completes the argument below?

When interest rates are high, insurance companies reduce the premiums they charge for many kinds of insurance policies. The reason is that insurance companies want to take in as much money as possible in premiums so that they can invest the money at high rates of interest. And premium reductions help achieve this objective, since __________.

(A) interest rates are likely to decrease when large amounts of money are available for loans
(B) smaller insurance companies are not able to amass enough money to take advantage of investing at high interest rates
(C) insurance companies can sell many more insurance policies if they charge lower premiums than they would if they left premiums unchanged
(D) an increase in the number of policies sold eventually leads to an increase in the number of claims that an insurance company has to pay
(E) the number of claims that insurance companies pay increases at a higher rate than does the number of policies that the insurance companies can sell at the lower premiums

C is good.
SVP
Joined: 04 May 2006
Posts: 1926
Schools: CBS, Kellogg
Followers: 21

Kudos [?]: 860 [0], given: 1

### Show Tags

15 May 2008, 05:21
year, OA is C

I wish that you attached with your choice some reasoning, better!
_________________
Manager
Joined: 28 Apr 2008
Posts: 133
Followers: 2

Kudos [?]: 35 [0], given: 0

### Show Tags

15 May 2008, 09:26
IR high -> IC reduce premiums for many IP's.
Reason : IC make $'s by investing$ at higher IR.

Before we look at the choices - a Premium reduction would mean that consumer pay's less but somehow the IC has to make more money. So we are looking for something similar to this in the answer choices. And C stands out saying "pick me"

sondenso wrote:
27.
Which of the following most logically completes the argument below?

When interest rates are high, insurance companies reduce the premiums they charge for many kinds of insurance policies. The reason is that insurance companies want to take in as much money as possible in premiums so that they can invest the money at high rates of interest. And premium reductions help achieve this objective, since __________.

(A) interest rates are likely to decrease when large amounts of money are available for loans
(B) smaller insurance companies are not able to amass enough money to take advantage of investing at high interest rates
(C) insurance companies can sell many more insurance policies if they charge lower premiums than they would if they left premiums unchanged
(D) an increase in the number of policies sold eventually leads to an increase in the number of claims that an insurance company has to pay
(E) the number of claims that insurance companies pay increases at a higher rate than does the number of policies that the insurance companies can sell at the lower premiums
SVP
Joined: 04 May 2006
Posts: 1926
Schools: CBS, Kellogg
Followers: 21

Kudos [?]: 860 [0], given: 1

### Show Tags

15 May 2008, 18:39
yavasani wrote:
Before we look at the choices - a Premium reduction would mean that consumer pay's less but somehow the IC has to make more money. So we are looking for something similar to this in the answer choices. And C stands out saying "pick me"

Thanks yavasani!
_________________
Re: Pr.4.27.CR.Incomplet argument   [#permalink] 15 May 2008, 18:39
Similar topics Replies Last post
Similar
Topics:
which of the following most logically completes the argument 6 10 Oct 2007, 14:21
7 Which of the following most logically completes the argument 27 01 Aug 2007, 14:16
Which of the following most logically completes the argument 5 29 Jul 2007, 06:33
Which of the following most logically completes the argument 5 01 Jun 2007, 17:08
Which of the following most logically completes the argument 11 01 Nov 2006, 18:32
Display posts from previous: Sort by