Annoyed and unsatisfied with the services provided by banks, a consume

Question

Annoyed and unsatisfied with the services provided by banks, a consumer single-handedly created a new banking system. The new system gained popularity rapidly, soon controlling a large portion of the market, and consequently leading to the bankruptcy of a few large banks. These cases of bankruptcy resulted in the unemployment of thousands of people. The government intervened, terminating all business related to the new banking system on the basis of the claim that it was the root of the unemployment, and a potential economic crisis. Nevertheless, in the interests of economic health, this forced closure of the new banking system should be revoked since __________.

Which of the following most logically completes the argument?

Which of the following most logically completes the argument?

(A) it was the incompetence and high fees charged by the banks that led to the development of the new system in the first place

(B) the fact that many banks went bankrupt only shows that people are better off saving their hard-earned money in safes

(C) mass unemployment results in a low purchasing power and, in turn, low income for industries, fueling additional unemployment

(D) the methods formerly employed by the banks sapped the economy's foundations and left it vulnerable to radical changes in its monetary system

(E) developers of new products or services must take into account the social and economic effect of their creations on the greater population

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MeharCV · Answer

The question stem follows the following logic:

Bad banking service->new system-> bankruptcy for banks with old system-> mass unemployment -> closure of new system due to mass unemployment (acc. to government)

We need to find the option that shows that this progression till unemployment is not the new system's fault hence revoking the closure.

The answer should be D as this answer choice supports the conclusion and completes the argument by showing that, unlike other banks, the new banking system does not hurt the economy. It shifts the blame for unemployment and economic problems to the old banking methods, making it less likely that the new system is responsible for the downturn and clearing it of blame for the crash.

Bunuel · Answer

OFFICIAL EXPLANATION

Annoyed and unsatisfied with the services provided by banks, a consumer single-handedly created a new banking system. The new system gained popularity rapidly, soon controlling a large portion of the market, and consequently leading to the bankruptcy of a few large banks. These cases of bankruptcy resulted in the unemployment of thousands of people. The government intervened, terminating all business related to the new banking system on the basis of the claim that it was the root of the unemployment, and a potential economic crisis. Nevertheless, in the interests of economic health, this forced closure of the new banking system should be revoked since __________.

Which of the following most logically completes the argument?

Which of the following most logically completes the argument?

(A) it was the incompetence and high fees charged by the banks that led to the development of the new system in the first place

Incorrect.

This is a "Complete the Argument" format question. The missing argument part follows the reason conjunction since, so it's a premise, which supports the conclusion. Therefore, this is a Conclusion Strengthening question:

Premise A: an unsatisfied consumer single-handedly created a new banking system
 +
Premise B: the new system became popular, making other banks declare bankruptcy
 +
Premise C: the banks that closed down left many people unemployed
 +
Premise D: the government decided to shut down the new system, claiming it was the cause for unemployment
 =
Conclusion: the forced shut-down of the new banking system should be canceled

Strengthening Data: ?

You are required to complete the argument with data that supports the conclusion or detracts from the government's decision.

While this answer choice sides with the new banking system, it fails to explain its contribution to economic health, and therefore cannot logically complete the argument. Even if the banks were at fault for the rise of the new system, the new banking system cannot be justified if it is the actual cause of unemployment.

(B) the fact that many banks went bankrupt only shows that people are better off saving their hard-earned money in safes

Incorrect.

This answer choice does not explain why the new system should be kept and, therefore, cannot logically complete the argument. The new system is, in fact, also a bank so this statement about not using banks at all doesn't help us support the conclusion that the new system shouldn't be abolished.

(C) mass unemployment results in a low purchasing power and, in turn, low income for industries, fueling additional unemployment

Incorrect.

This answer choice weakens the conclusion and, therefore, cannot logically complete the argument. By highlighting the seriousness of unemployment, this statement makes the new system responsible for much larger damages.

(D) the methods formerly employed by the banks sapped the economy's foundations and left it vulnerable to radical changes in its monetary system

This answer choice strengthens the conclusion and logically completes the argument by suggesting that in contrast to the other banks, the new system banking does not harm the economy. This answer choice shifts the blame for unemployment and economic malaise to the banks' previous methods, thus undermining the claim that the new banking system was responsible for the downward economic turn, and relieving it of the responsibility for the crash.

(E) developers of new products or services must take into account the social and economic effect of their creations on the greater population

Incorrect.

This is a "Complete the Argument" format question. The missing argument part follows the reason conjunction since, so it's a premise, which supports the conclusion. Therefore, this is a Conclusion Strengthening question:

Premise A: an unsatisfied consumer single-handedly created a new banking system
 +
Premise B: the new system became popular, making other banks declare bankruptcy
 +
Premise C: the banks that closed down left many people unemployed
 +
Premise D: the government decided to shut down the new system, claiming it was the cause for unemployment
 =
Conclusion: the forced shut-down of the new banking system should be canceled

Strengthening Data: ?

You are required to complete the argument with data that supports the conclusion or detracts from the government's decision.

This answer choice weakens the conclusion and, therefore, cannot logically complete the argument. This statement lays the responsibility of unemployment (economic effect) on the creator of the new system. Therefore, it weakens the idea that he has the new system should not be abolished.

Annoyed and unsatisfied with the services provided by banks, a consume

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GMAT Critical Reasoning (CR) Questions

Annoyed and unsatisfied with the services provided by banks, a consume

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615 to 715 in 15 Days (Ria's Strategies)

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