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# Declining prices for homes and businesses, the underlying

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Manager
Joined: 28 Jul 2011
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10 Oct 2011, 21:07
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Question Stats:

70% (00:52) correct 30% (01:06) wrong based on 114 sessions

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Declining prices for homes and businesses, the underlying assets of the mortgages that banks issued, is going to force a number of financial instutions to declare bankruptcy in the coming years.

a. the underlying assets of the mortgages that banks issued, is
b. which are the underlying assets that banks issue is
c. the morgages that comprises the underlying assets that are issued by banks, is
d. which banks issue as assests to issue mortgages,are
e. the underlying assets of the mortgages that banks issued, are

As per my understanding the Gerund phrase "Declining prices" if Subject should be Singular, then why is the OA choice plural "are" and not "is"?

Example: Delivering Pizzas IS not a glamorous job, but it pays my bills.

Can anyone explain? What is the difference between the Sentence and the example above?
[Reveal] Spoiler: OA

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Re: gerund phrase if sub should be singular as per my underst.ng [#permalink]

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10 Oct 2011, 23:54
Declining prices: Here the declining is a participle and an adjective. The real subject is the plural ‘prices’. If you want to use declining as a gerund, then you have to say 'declining of' prices’.
The use of ‘are’ is correct
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Manager
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Re: gerund phrase if sub should be singular as per my underst.ng [#permalink]

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11 Oct 2011, 05:48
daagh wrote:
Declining prices: Here the declining is a participle and an adjective. The real subject is the plural ‘prices’. If you want to use declining as a gerund, then you have to say 'declining of' prices’.
The use of ‘are’ is correct

now that is confusing, but if I have "Declining of Prices" that means "Prices" will be the antecedent then "Prices" will be Subject and verb "are" should be correct.

its still not clear, m i missing something, i think i have to go back and read grammer

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Retired Moderator
Status: worked for Kaplan's associates, but now on my own, free and flying
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Re: gerund phrase if sub should be singular as per my underst.ng [#permalink]

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11 Oct 2011, 07:19
Declining of prices: ‘prices’ is the object of the preposition of, which we should ignore. Therefore, ‘declining of’ will remain the singular subject, and hence the verb will be the singular ‘is
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Manager
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Re: gerund phrase if sub should be singular as per my underst.ng [#permalink]

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02 Nov 2011, 01:54
kuttingchai wrote:
Declining prices for homes and businesses, the underlying assets of the mortgages that banks issued, is going to force a number of financial instutions to declare bankruptcy in the coming years.

a. the underlying assets of the mortgages that banks issued, is
b. which are the underlying assets that banks issue is
c. the morgages that comprises the underlying assets that are issued by banks, is
d. which banks issue as assests to issue mortgages,are
e. the underlying assets of the mortgages that banks issued, are

As per my understanding the Gerund phrase "Declining prices" if Subject should be Singular, then why is the OA choice plural "are" and not "is"?

Example: Delivering Pizzas IS not a glamorous job, but it pays my bills.

Can anyone explain? What is the difference between the Sentence and the example above?

The first clause acts like a modifier . Because it has the present participle "declining"), hence the successive clause should start with the word which is being modified. This leaves us with only A and E. Since "prices" is plural, E wins.

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Manager
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Re: gerund phrase if sub should be singular as per my underst.ng [#permalink]

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02 Nov 2011, 17:55
immaculatesahai wrote:
kuttingchai wrote:
Declining prices for homes and businesses, the underlying assets of the mortgages that banks issued, is going to force a number of financial instutions to declare bankruptcy in the coming years.

a. the underlying assets of the mortgages that banks issued, is
b. which are the underlying assets that banks issue is
c. the morgages that comprises the underlying assets that are issued by banks, is
d. which banks issue as assests to issue mortgages,are
e. the underlying assets of the mortgages that banks issued, are

As per my understanding the Gerund phrase "Declining prices" if Subject should be Singular, then why is the OA choice plural "are" and not "is"?

Example: Delivering Pizzas IS not a glamorous job, but it pays my bills.

Can anyone explain? What is the difference between the Sentence and the example above?

The first clause acts like a modifier . Because it has the present participle "declining"), hence the successive clause should start with the word which is being modified. This leaves us with only A and E. Since "prices" is plural, E wins.

I also chose E. How does "declining prices" modify assets?

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Manager
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03 Nov 2011, 07:57
Declining is acting as an adjective here, so prices is the subject therefore it should go with a plural verb. Noted

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Manager
Status: MLT Fellowship - MBA Prep
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Location: United States (CA)
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03 Nov 2011, 18:06
Needs to be ARE... prices - plural

d) which would be connected to businesses... while e) modifies the preceeding clause.

E!
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Manager
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03 Dec 2012, 20:29
Can somebody help me to narrow down between D & E-

My take for D is - which should refer to compound Noun -in this case Homes and Business

I understand that there is nothing wrong with E ,but then same is for D as well .

Kindly let me know .

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Manager
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03 Dec 2012, 21:05
Declining prices- here prices is the subject which is plural.
Delivering pizzas- Here delivering is a verb that has been made into a gerund.
In declining prices, the emphasis is still on prices although considerably lower prices, declining is more like an adjective here. So subject is plural.

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Manager
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21 Nov 2015, 13:23
[quote=

I also chose E. How does "declining prices" modify assets?[/quote]

The clause "the underlying assets" is modified by "prices for homes and businesses" - which are the underlying assets.
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Re: Declining prices for homes and businesses, the underlying   [#permalink] 21 Nov 2015, 13:23
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