Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

It is currently 29 May 2017, 10:06

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Connsumers in California seeking personal loans have fewer

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Manager
Manager
avatar
Joined: 30 Mar 2007
Posts: 179
Followers: 1

Kudos [?]: 39 [0], given: 0

Connsumers in California seeking personal loans have fewer [#permalink]

Show Tags

New post 07 May 2007, 21:13
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

63% (03:49) correct 38% (02:11) wrong based on 36 sessions

HideShow timer Statistics

Connsumers in California seeking personal loans have fewer banks to turn than do consumers elsewhere in the US. This shortage of competion among banks explains why interest rates on personal loans in California are higher than in any other region of the US.
Which of the following, if true, most substantially weakens the conclusion above?

A. Because of the comparatively high wayes they must pay to attract qualified workers, California banks charge depositors more than banks elsewhere do for many of the services they offer.
B. Personal loans are risker than other types of loans, such as home mortgage loans, that banks make.
C. Since bank deposits in California are covered by the same type of insurnance that guarentees bank deposit in other parts of the United States, they are no less secure than deposits elsewhere
D. The proportion of consumers who default on their personal loans is lower in California than in any other region of the US
E. Interest rates paid by California banks to depositors are lower than those paid by banks in other parts of the US because in California there is less competition to attract depositors

In the passage, does the shortage of competition among banks mean that there is no competition? I am a bit confused
Manager
Manager
avatar
Joined: 25 May 2011
Posts: 152
Followers: 2

Kudos [?]: 68 [0], given: 71

Re: Connsumers in California seeking personal loans have fewer [#permalink]

Show Tags

New post 19 Dec 2011, 09:51
I went to A
what's OA?
BSchool Forum Moderator
User avatar
Status: Flying over the cloud!
Joined: 17 Aug 2011
Posts: 887
Location: Viet Nam
Concentration: International Business, Marketing
GMAT Date: 06-06-2014
GPA: 3.07
Followers: 74

Kudos [?]: 658 [0], given: 44

GMAT ToolKit User Premium Member Reviews Badge
Re: Connsumers in California seeking personal loans have fewer [#permalink]

Show Tags

New post 19 Dec 2011, 10:05
I will go with A. Furthermore, shortage of competition does not mean no competition, but mean lack of competition.
_________________

Rules for posting in verbal gmat forum, read it before posting anything in verbal forum
Giving me + 1 kudos if my post is valuable with you :)

The more you like my post, the more you share to other's need

CR: Focus of the Week: Must be True Question

Senior Manager
Senior Manager
User avatar
Joined: 19 Apr 2011
Posts: 279
Schools: Booth,NUS,St.Gallon
Followers: 5

Kudos [?]: 311 [0], given: 51

Re: Connsumers in California seeking personal loans have fewer [#permalink]

Show Tags

New post 21 Dec 2011, 01:26
I go with A
_________________

+1 if you like my explanation .Thanks :)

Senior Manager
Senior Manager
avatar
Joined: 13 Aug 2010
Posts: 297
Followers: 1

Kudos [?]: 26 [0], given: 1

Re: Connsumers in California seeking personal loans have fewer [#permalink]

Show Tags

New post 21 Dec 2011, 04:19
A. Because of the comparatively high wayes they must pay to attract qualified workers, California banks charge depositors more than banks elsewhere do for many of the services they offer.
-- interest rates are high as expenditure is high, correct !
B. Personal loans are risker than other types of loans, such as home mortgage loans, that banks make.
-- this can imply to other states too, this is out.
C. Since bank deposits in California are covered by the same type of insurnance that guarentees bank deposit in other parts of the United States, they are no less secure than deposits elsewhere
-- this supports, hence out
D. The proportion of consumers who default on their personal loans is lower in California than in any other region of the US
-- out of scope.
E. Interest rates paid by California banks to depositors are lower than those paid by banks in other parts of the US because in California there is less competition to attract depositors
-- irrelevant.
Director
Director
avatar
Joined: 28 Jul 2011
Posts: 548
Location: United States
Concentration: International Business, General Management
GPA: 3.86
WE: Accounting (Commercial Banking)
Followers: 3

Kudos [?]: 238 [0], given: 16

Re: Connsumers in California seeking personal loans have fewer [#permalink]

Show Tags

New post 21 Dec 2011, 04:39
With A
_________________

+1 Kudos If found helpful..

Manager
Manager
avatar
Joined: 12 Nov 2011
Posts: 52
GMAT Date: 12-15-2011
Followers: 0

Kudos [?]: 12 [0], given: 1

Re: Connsumers in California seeking personal loans have fewer [#permalink]

Show Tags

New post 21 Dec 2011, 21:28
IMO A
A show off an alternative cause
Manager
Manager
avatar
Joined: 11 Dec 2011
Posts: 54
Location: Malaysia
Concentration: Nonprofit, Sustainability
GMAT 1: 730 Q49 V40
GPA: 3.16
WE: Consulting (Computer Software)
Followers: 0

Kudos [?]: 11 [0], given: 7

GMAT ToolKit User
Re: Connsumers in California seeking personal loans have fewer [#permalink]

Show Tags

New post 22 Dec 2011, 00:34
acdbe2003 wrote:
IMO A
A show off an alternative cause


same reasoning... A
Manager
Manager
User avatar
Joined: 07 Aug 2011
Posts: 181
Location: United States
Concentration: Technology, International Business
GMAT 1: 690 Q48 V37
Followers: 3

Kudos [?]: 23 [0], given: 6

Re: Connsumers in California seeking personal loans have fewer [#permalink]

Show Tags

New post 26 Dec 2011, 08:34
So we need to counter the argument and state that its not due to lack of completion but some other reason for high interest rate

Only A provides an alternative reason for high interest rate
Re: Connsumers in California seeking personal loans have fewer   [#permalink] 26 Dec 2011, 08:34
    Similar topics Author Replies Last post
Similar
Topics:
Those who feel that fewer and fewer people in this country have a NYCgirl15 0 10 Oct 2016, 00:18
Those who feel that fewer and fewer people in this country have a NYCgirl15 0 24 Apr 2015, 09:39
Experts publish their posts in the topic Siblings tend to have similar personalities; if environment feruz77 2 27 Oct 2010, 09:35
4 Left-handed persons have an advantage over right-handed tarek99 27 27 Nov 2008, 23:36
The fewer restrictions there are on the advertising of legal pi10t 0 10 Mar 2013, 14:21
Display posts from previous: Sort by

Connsumers in California seeking personal loans have fewer

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

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®.