GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 16 Aug 2018, 12:50

### 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

# Bank officers indicate that decreasing rates of loans have

Author Message
TAGS:

### Hide Tags

Intern
Joined: 31 Oct 2011
Posts: 42
Concentration: General Management, Entrepreneurship
GMAT 1: 710 Q50 V35
GPA: 3.4
WE: Accounting (Commercial Banking)
Bank officers indicate that decreasing rates of loans have  [#permalink]

### Show Tags

18 Aug 2012, 09:28
1
1
00:00

Difficulty:

(N/A)

Question Stats:

82% (00:56) correct 18% (01:13) wrong based on 173 sessions

### HideShow timer Statistics

Bank officers indicate that decreasing rates of loans have dropped to allow customers to borrow money for cars, education, and holiday gift purchases.
A. rates of loans have dropped to allow
B. rates of loans are a reason for
C. rates for loans are allowing
D. drops in loan rates are allowing
E. loan rates have dropped to allow

Hi, I have one below question from Kaplan but I don't have the Official question. Please provide your answer and explanation.
 Kaplan GMAT Prep Discount Codes Math Revolution Discount Codes Economist GMAT Tutor Discount Codes
Retired Moderator
Status: worked for Kaplan's associates, but now on my own, free and flying
Joined: 19 Feb 2007
Posts: 4524
Location: India
WE: Education (Education)
Re: Decreasing rates of loans - from Kaplan  [#permalink]

### Show Tags

18 Aug 2012, 09:38
2
A. rates of loans have dropped to allow----dropped and decreasing redundancy
B. rates of loans are a reason for --- correct idiom and correct choice
C. rates for loans are allowing ----rates for loans is unidiomatic
D. drops in loan rates are allowing--- decreasing drops—redundancy
E. loan rates have dropped to allow --- decreasing loan rates ------redundancy
_________________

you can know a lot about something and not really understand it."-- a quote
No one knows this better than a GMAT student does.
Narendran +9198845 44509

Intern
Joined: 31 Oct 2011
Posts: 42
Concentration: General Management, Entrepreneurship
GMAT 1: 710 Q50 V35
GPA: 3.4
WE: Accounting (Commercial Banking)
Re: Decreasing rates of loans - from Kaplan  [#permalink]

### Show Tags

20 Aug 2012, 08:21
1
Thanks Daagh,
For your explanation, I saw in the Internet, both the term "rates of loans" and "rates for loans" are used interchangeably.
For example, on one document from Moodys (a very prestigious ratings company) used both above terms without difference. Could you please explain the source to tell GMAT prefer "rates of loans" over "rates for loans" ?
Retired Moderator
Status: worked for Kaplan's associates, but now on my own, free and flying
Joined: 19 Feb 2007
Posts: 4524
Location: India
WE: Education (Education)
Re: Decreasing rates of loans - from Kaplan  [#permalink]

### Show Tags

20 Aug 2012, 08:54
Just my personal instinct rather than any professed cue from GMAT; I may be even wrong.
_________________

you can know a lot about something and not really understand it."-- a quote
No one knows this better than a GMAT student does.
Narendran +9198845 44509

Manager
Status: SLOGGING : My son says,This time Papa u will have to make it : Innocence is BLISS
Joined: 16 Jan 2012
Posts: 180
Location: India
WE: Sales (Energy and Utilities)
Re: Bank officers indicate that decreasing rates of loans have  [#permalink]

### Show Tags

29 Aug 2012, 11:43
I second Daagh : I will go with my gut ie Rate Of

However, If idiomatic usage Rates Of ....... Rates For keeps us baffled and doesn't help us in narrowing down to the final ans

The 2nd split

The intent : Customers are borrowing more........... WHY ?..........What is the reason ?

Guess the Ans to the above is.......... REDUCED RATES / DECREASING RATES

B : REDUCED RATES are the reason for............ (The increase in borrowing)

C : REDUCED RATES are allowing customers to borrow more : guess rates don't allow anything, they might be a cause/reason for increased/ decreased sales/ borrowing ------ Eliminated

Intern
Joined: 17 Sep 2011
Posts: 12
Re: Bank officers indicate that decreasing rates of loans have  [#permalink]

### Show Tags

15 Sep 2012, 02:53
1
Answer to this Question should be C.

There is a Similar Question in the OG verbal Review ( Old version ). Q no. 76. THE OE clearly states that when Rates means change in price , it is followed by FOR. Therefore RATES FOR is correct and the most C is also the concise than B.
Manager
Status: Trying.... & desperate for success.
Joined: 17 May 2012
Posts: 68
Location: India
Schools: NUS '15
GPA: 2.92
WE: Analyst (Computer Software)
Re: Decreasing rates of loans - from Kaplan  [#permalink]

### Show Tags

15 Sep 2012, 14:17
2
daagh wrote:
A. rates of loans have dropped to allow----dropped and decreasing redundancy
B. rates of loans are a reason for --- correct idiom and correct choice
C. rates for loans are allowing ----rates for loans is unidiomatic
D. drops in loan rates are allowing--- decreasing drops—redundancy
E. loan rates have dropped to allow --- decreasing loan rates ------redundancy

Daagh,
rate-of-vs-rate-for-95013.html
As above link, PFB the usage.
Rate of - frequency
Rates for - Money

Given the context here, we are talking about the interest percentage for loans. So, will that still be rates of or rates for.
Director
Status: 1,750 Q's attempted and counting
Affiliations: University of Florida
Joined: 09 Jul 2013
Posts: 508
Location: United States (FL)
Schools: UFL (A)
GMAT 1: 600 Q45 V29
GMAT 2: 590 Q35 V35
GMAT 3: 570 Q42 V28
GMAT 4: 610 Q44 V30
GPA: 3.45
WE: Accounting (Accounting)
Re: Bank officers indicate that decreasing rates of loans have  [#permalink]

### Show Tags

14 Nov 2013, 09:01
1
this showed up as a kaplan question of the day. here is the official explanation

The idiomatic way to express the price of an object when using the word "rates" is "rates for". Choice (A) is incorrect because it uses the expression "rates of". Furthermore, Choice (A) contains a redundancy: "dropped". We already know that rates are decreasing, so the "dropped" is superfluous.

Choice (B) fails to correct the incorrect expression "rates of". Choices (D) and (E) fail to remove the superfluous "dropped".

Only Choice (C) corrects both of the errors in the original sentence. Choice (C) accurately states "rates for" and refrains from being redundant.
Retired Moderator
Joined: 16 Jun 2012
Posts: 1075
Location: United States
Re: Bank officers indicate that decreasing rates of loans have  [#permalink]

### Show Tags

14 Nov 2013, 13:23
1
Bank officers indicate that decreasing rates of loans have dropped to allow customers to borrow money for cars, education, and holiday gift purchases.

A. rates of loans have dropped to allow
Wrong. decreasing + dropped ==> redundant.

B. rates of loans are a reason for
Wrong.
Please note: Real Gmat prefers rule V-A-N. Thus, verb form is always better than noun form.
==> X are a reason for Y to borrow money ==> Not as good as "X allow Y to borrow money"

C. rates for loans are allowing
Correct.
"Rates for loans" is correct usage. "rate for" is used for money.
Good structure: X allow Y to do Z..... ==> concise and clear.

D. drops in loan rates are allowing
Wrong. decreasing + drop ==> redundant.

E. loan rates have dropped to allow
Wrong. Wrong. decreasing + dropped ==> redundant.

Hope it helps.
_________________

Please +1 KUDO if my post helps. Thank you.

"Designing cars consumes you; it has a hold on your spirit which is incredibly powerful. It's not something you can do part time, you have do it with all your heart and soul or you're going to get it wrong."

Chris Bangle - Former BMW Chief of Design.

Non-Human User
Joined: 01 Oct 2013
Posts: 2603
Re: Bank officers indicate that decreasing rates of loans have  [#permalink]

### Show Tags

20 Sep 2017, 09:11
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
Re: Bank officers indicate that decreasing rates of loans have &nbs [#permalink] 20 Sep 2017, 09:11
Display posts from previous: Sort by

# Events & Promotions

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.