Events & Promotions
| Last visit was: 06 Sep 2026, 12:14 |
It is currently 06 Sep 2026, 12:14 |
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Sep 0712:01 AM PDT
-11:59 PM PDT
On the 7th, GMAT Club Tests will be Free! Including all the Quizzes, Questions, and Tests. 12 AM - 11:59 PM PDT- Sep 07
10:00 AM PDT
-11:00 AM PDT
A complete walkthrough of GMAT Club’s free 12-week GMAT study plan: what you study each week, how progress and goals are tracked, how the error log works, and how your practice unlocks paid tools at no cost. 
Sep 0201:00 PM EDT
-11:59 PM EDT
Take 30% off all study plans with code COURSEWORK - Expires on Monday 9/7
Sep 0410:00 AM EDT
-11:59 PM EDT
We’ve worked incredibly hard to build TTP into the best test prep experience possible, and it would mean a lot to us to win Newsweek’s 2026 Readers’ Choice Award for Best Test Prep. If TTP has helped you, we’d be incredibly grateful for your vote.
Sep 0609:30 AM EDT
-12:30 PM EST
Top scores are possible when you enroll in a powerful EA course, taught live online + 6 months access to TTP OnDemand video courses included! Perfect class schedule and easy course access for working professionals. Class starts Sundays Sept. 6, 2026.- Sep 09
07:00 AM PDT
-10:00 AM PDT
Meet AdComs and explore top Master’s programs - MiM, MiF, MSc, MSBA and more. - Application Fee Waivers - Free 1-Week of GMAT Club Tests: - Master's Application Toolkit - Grand Prize Giveaway - Sep 09
10:00 AM PDT
-11:00 AM PDT
Three MBA applications. Three rejections. No interview invites. A year later, Aman was admitted to Cambridge Judge, SMU, and IMD. In this episode of MBA Admit Stories, Aman shares how he rebuilt his MBA application... 
Sep 1507:00 PM EDT
-09:00 PM EST
Elite scores are possible when you enroll in a powerful GMAT course, taught live online + 6 months access to TTP OnDemand video courses included! Class starts Tues/Thurs Sept. 15, 2026 - Nov. 15, 2027, 7:00pm-9:00pm EST
Sep 2108:00 PM EDT
-10:00 PM EDT
Boost your GMAT score in less than one month in a live online class + 6 months access to TTP OnDemand video courses included! Class starts Mon, Tues, Wed, Thur, Fri Sept. 21, 2026 - Oct. 9, 2027, 7:00pm-10:00pm EST
msignatius
23 Dec 2025, 05:30
Kudos
Bookmarks
This one, in my opinion, is a classic case of "find something that fits, not something that fits perfectly".
I'll show you what I mean.
First, what the stem says: CBDCs will help reduce dependence on private banks because CBDCs are risk-free, allow people to hold funds directly with the state, which in turn will help in economic crises as during those times private banks can experience great instability. These reasons are backed to support the conclusion - "widespread adoption of CBDCs will enhance overall financial stability."
Here are a few assumptions as well the argument makes as well, that are better to state here, because the answer asks for a weakener and we don't want to accidentally pick an assumption:
- The government is more trusted during financial crises and considered risk-free.
- The government holds less risk of instability / bank runs during financial crises.
- The lack of risk is a strong enough reason to encourage people to shift away from commercial banks.
With all this delineation, we can look at the options to find the "most serious weakener"
A: Great, so the CBDC's product works well. Are we debating the quality of the product, though? Nope, we are debating its risk factors, advantages to people and the economy, and role during financial crises and in boosting financial stability. Eliminate.
B: This can actually just be a measure to improve stability, isn't it? The stem states that government banks are more stable, and if they restrict account limits to "avoid destabilizing commercial lending markets" that's a step towards stability. Eliminate.
C: This is just what is said by one of the assumptions I stated above - the argument seems to assume that people consider the government trustworthy in the first place and value that; but we can't use an assumption as fact. Even if we do, this is quite clearly a strengthener.
D: Private banks are taking measures to compete with the CBDC program? Call this a strengthener, in how the competition is accepting the merits of a program.
E: Now, this is the answer, but as I stated right at the start, "look for an answer that fits, even if not perfectly", you do see that we're talking about countries different from the country in the stem - and what happened there may not apply to us, but it is reasonable that if the general trend's been for people to keep their savings in private banks, thus nullifying the goals and compromising the benefits of CBDC, then this may as well work as weakener.
I'll show you what I mean.
First, what the stem says: CBDCs will help reduce dependence on private banks because CBDCs are risk-free, allow people to hold funds directly with the state, which in turn will help in economic crises as during those times private banks can experience great instability. These reasons are backed to support the conclusion - "widespread adoption of CBDCs will enhance overall financial stability."
Here are a few assumptions as well the argument makes as well, that are better to state here, because the answer asks for a weakener and we don't want to accidentally pick an assumption:
- The government is more trusted during financial crises and considered risk-free.
- The government holds less risk of instability / bank runs during financial crises.
- The lack of risk is a strong enough reason to encourage people to shift away from commercial banks.
With all this delineation, we can look at the options to find the "most serious weakener"
A: Great, so the CBDC's product works well. Are we debating the quality of the product, though? Nope, we are debating its risk factors, advantages to people and the economy, and role during financial crises and in boosting financial stability. Eliminate.
B: This can actually just be a measure to improve stability, isn't it? The stem states that government banks are more stable, and if they restrict account limits to "avoid destabilizing commercial lending markets" that's a step towards stability. Eliminate.
C: This is just what is said by one of the assumptions I stated above - the argument seems to assume that people consider the government trustworthy in the first place and value that; but we can't use an assumption as fact. Even if we do, this is quite clearly a strengthener.
D: Private banks are taking measures to compete with the CBDC program? Call this a strengthener, in how the competition is accepting the merits of a program.
E: Now, this is the answer, but as I stated right at the start, "look for an answer that fits, even if not perfectly", you do see that we're talking about countries different from the country in the stem - and what happened there may not apply to us, but it is reasonable that if the general trend's been for people to keep their savings in private banks, thus nullifying the goals and compromising the benefits of CBDC, then this may as well work as weakener.
Bunuel
23 Dec 2025, 06:04
Kudos
Bookmarks
The claim is that CBDCs will strengthen financial stability because people will move deposits from private banks to risk-free CBDC accounts reducing bank-run risk.
A.The statement was irrelevant to stability or deposit shifting.
B.The account limits may be put up, this makes the idea of large scale deposit shifting weak, it is not evidence.
C.It states a stronger interest in high trust region were support is not undermined.
D.It states that banks offer new features that could reduce deposit shifting but it does not directly show that CBDCs fails to move savings.
E. For this statement if savings remain in banks, the risk of bank runs is not reduced. Citizens use CBDCs for payments but keep savings in banks which directly undermines the reasoning.
A.The statement was irrelevant to stability or deposit shifting.
B.The account limits may be put up, this makes the idea of large scale deposit shifting weak, it is not evidence.
C.It states a stronger interest in high trust region were support is not undermined.
D.It states that banks offer new features that could reduce deposit shifting but it does not directly show that CBDCs fails to move savings.
E. For this statement if savings remain in banks, the risk of bank runs is not reduced. Citizens use CBDCs for payments but keep savings in banks which directly undermines the reasoning.
adityaprateek15
Joined: 26 May 2023
Last visit: 13 May 2026
Posts: 346
Given Kudos: 323
Location: India
Schools: Ross '26 Tepper '26 McCombs '26
GPA: 2.7
23 Dec 2025, 06:22
Kudos
Bookmarks
The entire argument relies on an important assumption that people will actually move their savings from private banks to CBDCs because of the perceived safety. But what if this doesn't happen? then the conclusion falls apart.
A. This choice actually strengthens the case for CBDC adoption. Eliminate.
B. This choice weakens the future action (what happens after people move their savings account). Eliminate.
C. This choice also strengthens the conclusion. Eliminate.
D. This choice shows that private banks are trying to retain their customers, but whether they have been successful is not specified. Eliminate.
E. This choice directly attacks the most critical link in the argument's chain. It provides actual evidence from initial setups stating that people are not switching as was expected. Correct.
A. This choice actually strengthens the case for CBDC adoption. Eliminate.
B. This choice weakens the future action (what happens after people move their savings account). Eliminate.
C. This choice also strengthens the conclusion. Eliminate.
D. This choice shows that private banks are trying to retain their customers, but whether they have been successful is not specified. Eliminate.
E. This choice directly attacks the most critical link in the argument's chain. It provides actual evidence from initial setups stating that people are not switching as was expected. Correct.
Bunuel
23 Dec 2025, 06:32
Kudos
Bookmarks
CBDC are risk free.
People will move money out of private banks into CBDC.
Fewer bank deposits means fewer bank runs.
Therefore, financial stability increases.
Which of the following, if true, most seriously undermines the reasoning in the argument above?
A. The majority of CBDC pilot users report satisfaction with transaction speed and digital convenience features.
(Liking transaction speed or digital convenience features doesn’t mean people store their savings in CBDC) WRONG
B. Central banks may restrict CBDC account limits to avoid destabilizing commercial lending markets.
(It only shows that their effect might be smaller as they might restrict account limits. It slightly weakens the argument) WRONG
C. Surveys show that in regions with high trust in government institutions, public interest in CBDC adoption has been stronger.
(This supports adoption but it does not challenge bank-run reduction or deposit movement) Wrong
D. Private banks have begun offering real-time payment systems and deposit insurance enhancements to retain their customer base.
(It does not show that people won’t shift deposits) Wrong
E. In countries where CBDC pilots have been launched, many citizens have opted to use them for payments but continue to hold their savings in private banks.
(The argument depends on savings moving out of banks. If the savings still stay in private banks, bank-run risk still stays. And the financial stability would not improve as claimed. It undermines the reasoning in the argument) Correct
People will move money out of private banks into CBDC.
Fewer bank deposits means fewer bank runs.
Therefore, financial stability increases.
Which of the following, if true, most seriously undermines the reasoning in the argument above?
A. The majority of CBDC pilot users report satisfaction with transaction speed and digital convenience features.
(Liking transaction speed or digital convenience features doesn’t mean people store their savings in CBDC) WRONG
B. Central banks may restrict CBDC account limits to avoid destabilizing commercial lending markets.
(It only shows that their effect might be smaller as they might restrict account limits. It slightly weakens the argument) WRONG
C. Surveys show that in regions with high trust in government institutions, public interest in CBDC adoption has been stronger.
(This supports adoption but it does not challenge bank-run reduction or deposit movement) Wrong
D. Private banks have begun offering real-time payment systems and deposit insurance enhancements to retain their customer base.
(It does not show that people won’t shift deposits) Wrong
E. In countries where CBDC pilots have been launched, many citizens have opted to use them for payments but continue to hold their savings in private banks.
(The argument depends on savings moving out of banks. If the savings still stay in private banks, bank-run risk still stays. And the financial stability would not improve as claimed. It undermines the reasoning in the argument) Correct
