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05 Jan 2024, 02:30
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
92% (01:33) correct
8%
(01:53)
wrong
based on 211
sessions
History
Date
Time
Result
Not Attempted Yet
Economist A: Banks offer only small interest rates for money being stored in savings accounts. It is much better to create an investment portfolio with a financial management company in order to take advantage of money that has been put aside.
Economist B: Investments require speculation. I advise that at the moment, storing money in a bank savings account is the wise thing to do.
Which of the following, if true, most weakens economist A's advice?
(A) Maintaining a bank savings account requires the payment of handling fees which can be costly, depending on the bank.
(B) Investment portfolios are designed to maximize profits while reducing the risk to a minimum by dividing the investments to cover a variety of markets.
(C) A recent economic crisis led to the closing of several banks and to the subsequent loss of a great deal of the customers' savings.
(D) Owners of savings accounts in banks are only allowed to withdraw their money on certain dates decided upon when the account was created.
(E) A financial statistics report shows that 97% of all investment portfolios created in the last 3 years hold losses on their initial investments.
Economist B: Investments require speculation. I advise that at the moment, storing money in a bank savings account is the wise thing to do.
Which of the following, if true, most weakens economist A's advice?
(A) Maintaining a bank savings account requires the payment of handling fees which can be costly, depending on the bank.
(B) Investment portfolios are designed to maximize profits while reducing the risk to a minimum by dividing the investments to cover a variety of markets.
(C) A recent economic crisis led to the closing of several banks and to the subsequent loss of a great deal of the customers' savings.
(D) Owners of savings accounts in banks are only allowed to withdraw their money on certain dates decided upon when the account was created.
(E) A financial statistics report shows that 97% of all investment portfolios created in the last 3 years hold losses on their initial investments.
08 Jan 2024, 20:12
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Bunuel
Economist A is having bullish sentiment on the market and he is saying that bank offer very less interest so have to go for investment in equity and all.
Economist B is having bearish sentiment and saying current we should not invest.
So we have to find an option which weakens A, so any option which proves that currently it is bearish sentiment in the market and it is not able to beat the interest of banks also will give our ans.
So it is in E.
03 Feb 2024, 02:30
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OFFICIAL EXPLANATION
Economist A: Banks offer only small interest rates for money being stored in savings accounts. It is much better to create an investment portfolio with a financial management company in order to take advantage of money that has been put aside.
Economist B: Investments require speculation. I advise that at the moment, storing money in a bank savings account is the wise thing to do.
Which of the following, if true, most weakens economist A's advice?
(A) Maintaining a bank savings account requires the payment of handling fees which can be costly, depending on the bank.
Incorrect.
This is a Conclusion Weakening question in the Dialog format. You are asked to choose the answer choice which weakens Economist A's claim (or strengthens Economist B's response):
This answer choice weakens Economist B's support for bank savings accounts and, therefore, indirectly supports Economist A's claim. It does so by highlighting the costs of having a savings account. Remember, the question stem requires that you weaken Economist A's claim.
(B) Investment portfolios are designed to maximize profits while reducing the risk to a minimum by dividing the investments to cover a variety of markets.
Incorrect.
This answer choice supports Economist A's claim, but you are required to weaken it. By stating that investment portfolios reduce the risk and maximize profits we are led to believe that they may be safer than previously imagined and, therefore, perhaps better than bank savings accounts.
(C) A recent economic crisis led to the closing of several banks and to the subsequent loss of a great deal of the customers' savings.
Incorrect.
This answer choice directly weakens Economist B's response by presenting an actual case where customers lost money they had put into banks, thereby promoting the alternative option in the argument - to invest the money.
(D) Owners of savings accounts in banks are only allowed to withdraw their money on certain dates decided upon when the account was created.
Incorrect.
This answer choice weakens Economist B's support for bank savings accounts and, therefore, supports Economist A's claim. It does so by presenting a disadvantage of having a savings account. Remember, the question stem requires that you weaken Economist A's claim.
(E) A financial statistics report shows that 97% of all investment portfolios created in the last 3 years hold losses on their initial investments.
This answer choice presents data that directly weakens Economist A's viewpoint by revealing the fact that the great majority of the investments of the last 3 years have lost money.
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