Postage stamps have followers in every strand of society all over the

Question

Postage stamps have followers in every strand of society all over the world. As an alternative investment to more traditional markets, stamps have performed well, with highquality examples beating the return on most of the rest of the economy during low-interest rate periods. Stamps as an asset help a portfolio achieve diversification, so maximizing opportunity while minimizing risk. The market-makers are sometimes reported in the national press when they pay vast sums of money for examples of the world’s most expensive stamps. Particularly valuable are stamps that were misprinted, the most famous (and valuable) of which is perhaps the 1920s’ 24-cent American stamp with an upside-down biplane. Equally high prices are paid for examples of otherwise common stamps that carry unique differences. These variations may have been unintentional but their rarity sets them apart. In many instances, these differences are minuscule and what appears to the casual observer as an unremarkable example of an everyday stamp, is to the rich fanatic with a magnifying glass a highly valuable prize. For the vast majority of dealers and their customers, the celebrated super expensive stamps are the subject only of catalogues and magazine articles. Their domain is more likely to be the newly issued colorful commemorative stamps printed in the millions by national post offices. Thousands buy sheets of these stamps in the expectation that they will rise in value. All too often however, when the time comes to sell the collection they discover that the stamps are worth less than they were originally worth in terms of their posting value.    1 
 Q1. The primary objective of this passage is to:

A. promote stamps as an alternative investment to more usual investments such as the bond markets
B. describe philately, the hobby of collecting postage stamps
C. describe investing in stamps
D. describe the two worlds of philately: the small-time collector of decorative stamps with little real value and the international market of high-value, rare stamps
E. describe the two worlds of philately: the investor and the collector

2 
 Q2. In the context of the passage the word portfolio means:

A. a range of investments
B. a flat case for the safe transportation of stamps or other paper valuables
C. the duties of a minister of state
D. a sample of the items in a collection that demonstrate its extent
E. a set of stamps that collectively are worth more than they can command individually

3 
 Q3. Criminals sometimes use stamps to transport and launder large sums of money. Which of the features that make stamps attractive to criminals is not mentioned in the passage?

A. The casual observer is unlikely to realize the high value of some stamps.
B There is a ready market for stamps in most countries.
C. There are stamp dealers all over the world.
D. A few stamps can be worth a large sum of money.
E. Their size and value makes them highly portable.

4 
 Q4. Which of the following statements, if true, would prove the case that the vast majority of collectors find their collections worth less than they originally paid for them?

A. The world’s most expensive stamps have doubled in value in the last 12 years.
B. Over the years, high-quality stamps have risen in value at a rate equal to the growth rate of the rest of the economy.
C. The collecting price for a stamp is determined more by rarity than original posting value.
D. Commemorative stamps from the 1940s command the best prices.
E. After decades, some new issues command higher prices for collecting than their original posting.

5 
 Q5. Which of the following motives is not mentioned in the passage?

A. obsessive enthusiasm
B. a means to diversify investments
C. the expectation that they will rise in value
D. to beat the return of other markets at a time of low interest rates
E. to collect them

RC Butler 2022  -  Practice Two RC Passages Everyday.   
Passage # 89 Date: 02-Mar-2022
 This question is a part of RC Butler 2022 .  Click here for Details

Source: How to pass the GMAT

TBT · Answer

For Q5. where is obsessive enthusiasm mentioned in the passage? Profit angle is mentioned

Sajjad1994 · Answer

Official Explanation

Q5. Which of the following motives is not mentioned in the passage?

Explanation:

A careful reading of the passage will show that the motive of simply collecting stamps is not mentioned in the passage while the market maker is described as fanatical, which can mean obsessive enthusiasm.

Answer: E

hientranzx · Answer

Q1. The primary objective of this passage is to:

A. promote stamps as an alternative investment to more usual investments such as the bond markets
--> Wrong. There are 2 results of investing in stamps: 1. You can be rich (if the price increases), and 2. You will get nothing (they discover that the stamps are worth less than they were originally worth in terms of their posting value.)
B. describe philately, the hobby of collecting postage stamps
C. describe investing in stamps
CORRECT
D. describe the two worlds of philately: the small-time collector of decorative stamps with little real value and the international market of high-value, rare stamps
E. describe the two worlds of philately: the investor and the collector

Q2. In the context of the passage the word portfolio means:

A. a range of investments
Portfolio management is a subject.
B. a flat case for the safe transportation of stamps or other paper valuables
C. the duties of a minister of state
D. a sample of the items in a collection that demonstrate its extent
E. a set of stamps that collectively are worth more than they can command individually

Q3. Criminals sometimes use stamps to transport and launder large sums of money. Which of the features that make stamps attractive to criminals is not mentioned in the passage?

A. The casual observer is unlikely to realize the high value of some stamps.
these differences are minuscule and what appears to the casual observer as an unremarkable example of an everyday stamp, is to the rich fanatic with a magnifying glass a highly valuable prize.
B There is a ready market for stamps in most countries.
Postage stamps have followers in every strand of society all over the world.
C. There are stamp dealers all over the world.
Postage stamps have followers in every strand of society all over the world.
D. A few stamps can be worth a large sum of money.
The market-makers are sometimes reported in the national press when they pay vast sums of money for examples of the world’s most expensive stamps
E. Their size and value makes them highly portable.

Q4. Which of the following statements, if true, would prove the case that the vast majority of collectors find their collections worth less than they originally paid for them?

A. The world’s most expensive stamps have doubled in value in the last 12 years.
Still get profit
B. Over the years, high-quality stamps have risen in value at a rate equal to the growth rate of the rest of the economy.
Not get profit, but not "worth less than they originally paid"
C. The collecting price for a stamp is determined more by rarity than original posting value.
they discover that the stamps are worth less than they were originally worth in terms of their posting value.
D. Commemorative stamps from the 1940s command the best prices.
Still get profit
E. After decades, some new issues command higher prices for collecting than their original posting.
Still get profit

Q5. Which of the following motives is not mentioned in the passage?

A. obsessive enthusiasm
I have no idea with this answer

B. a means to diversify investments
Stamps as an asset help a portfolio achieve diversification
C. the expectation that they will rise in value
Thousands buy sheets of these stamps in the expectation that they will rise in value.
D. to beat the return of other markets at a time of low interest rates
stamps have performed well, with highquality examples beating the return on most of the rest of the economy during low-interest rate periods
E. to collect them

B. a means to diversify investments Stamps as an asset help a portfolio achieve diversification C. the expectation that they will rise in value Thousands buy sheets of these stamps in the expectation that they will rise in value. D. to beat the return of other markets at a time of low interest rates stamps have performed well, with highquality examples beating the return on most of the rest of the economy during low-interest rate periods E. to collect them

Pablopikachu · Answer

Q4 - someone pls explain in detail. GMATNinja

Also Q5 answer is unsatisfactory since even though collecting was not explicitly mentioned, it was, after all, implied throughout the passage.

italicfire · Answer

Same, by that logic if you look at para, it stays this has followers from all strands. This can also be taken as it has people who collect it. There must be some better logic.

Postage stamps have followers in every strand of society all over the

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Postage stamps have followers in every strand of society all over the

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