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Historians remain divided over the role of banks in facilitating eco

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Re: Historians remain divided over the role of banks in facilitating eco  [#permalink]

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New post 14 Mar 2018, 23:02
1
adkikani wrote:
GMATNinja GMATNinjaTwo


Quote:
(Book Question: 422) The passage suggests that the opposition to banks in the South in the early nineteenth century stemmed in part from the perception that banks
A. did not benefit more than a small minority of the people
B. did not support the interests of elite planters
C. were too closely tied to transportation and industrial interests
D. were unwilling to issue the long-term loans required by agrarian interests
E. were too willing to lend credit widely

The passage says:
Unlike the earliest banks (i.e. banks before early nineteenth century),
which had primarily provided short-term loans to
well-connected merchants, the banks of the early
nineteenth century issued credit widely (ie to more customers).


How an option A be correct?

What is issue with B/D?

Even though "the banks of the early nineteenth century issued credit widely," this question refers to the perception of banks in the South.

In the South, banks "were seen as monopolistic institutions controlled by an elite group of planters." So southerners thought that the banks were controlled by a small minority of people ("an elite group planters"). If this perception were accurate, then the banks would likely only benefit that small minority. Thus, in the South, there existed the perception that banks only benefited a small minority of people.

Choice (B) directly contradictions the perception in the South. Also, there is nothing in the passage to support choice (D). (A) is the best answer.

I hope that helps!
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New post 24 Apr 2018, 12:02
Q427 Which of the following statements best describe the function of the last sentence of the passage?

It was quite tricky. At first, I could not understand the right choice, but the first option (although wrong) gives you a hint.
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New post 15 May 2018, 19:20
GMATNinja wrote:
gamerguy0074 wrote:
GMATNinja
Please help in explaining the second and last questions this passage.. Your help is much appreciated

Quote:
(420) The passage suggests that the scholars mentioned in line 4 would argue that the reason banks tended not to fund manufacturing and transportation projects in the late eighteenth and early nineteenth centuries was that

As explained in the last sentence of the first paragraph, financial institutions (such as banks) followed conservative lending practices and shunned projects that were uncertain (i.e. risky) and capital-intensive, such as manufacturing and transportation projects. This implies that banks following conservative lending practices would prefer less risky projects.

So we know that banks tended not to fund manufacturing and transportation projects in the late eighteenth and early nineteenth centuries. Why?... because those banks, which followed conservative lending practices, preferred less risky projects. This reason is summarized in choice (B):
Quote:
(B) [manufacturing and transportation] projects entailed a level of risk that was too great for banks’ conservative lending practices

As for the last question,
Quote:
(423) Which of the following statements best describes the function of the last sentence of the passage?
A. It provides evidence tending to undermine the viewpoint of the scholars mentioned in line 5.
B. It resolves a conflict over the role of banks summarized in the first paragraph.
C. It clarifies some of the reasons state legislatures began granting more bank charters.
D. It qualifies a claim made earlier in the passage about the impact of banks on the American economy in the early nineteenth century.
E. It supports a claim made earlier in the passage about how the expansion of credit affected the economy.

The purpose of the second paragraph is to explain the historians' belief (or "claim") that banks were crucial in transforming the early national economy. Does this claim have any stated limitations? Yes--as explained in the last sentence of the passage, those same historians argued that, in the South, there was an exception to this general trend. So the last sentence modifies and limits ("qualifies") the historians' claim that banks were crucial in transforming the early national economy, and the answer is (D).

I hope this helps!
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New post 15 May 2018, 19:21
For the question 420.. Why can't we take option D as correct? The passage does talk about how these projects would not support economic growth? 'These banks played a minor role.....'

Cant we inter link these two statements?
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New post 05 Oct 2018, 15:25
Got 5/5 correct in 10:36 min including 4 min to read the passage!
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New post 25 Oct 2018, 03:31
Got 4/5 right in 11 minutes. Content, but not really happy about it. Should the time be under 10 minutes for such passages?

Thanks.
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New post 25 Oct 2018, 15:05
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nust2017 wrote:
Got 4/5 right in 11 minutes. Content, but not really happy about it. Should the time be under 10 minutes for such passages?

Thanks.


Timing with naturally improve with practice. It's good to focus on accuracy first.
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New post 25 Oct 2018, 15:25
dabaobao wrote:
nust2017 wrote:
Got 4/5 right in 11 minutes. Content, but not really happy about it. Should the time be under 10 minutes for such passages?

Thanks.


Timing with naturally improve with practice. It's good to focus on accuracy first.




Thank you. That helps. Just started studying for the GMAT a couple of days back, so getting at grips.
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New post 17 Mar 2019, 23:35
Hello abhimahna , GMATNinja and experts,

I have a small query regarding last question of the passage:
we know that qualify could either mean support or a criticism ( limiting)

Luckily option D is true for both interpretations:
It qualifies the claim by a school of Historians mentioned in 1st para that only a few sections of people benefited from banks.

It also qualifies the claim made by other historians such as PG mentioned in another paragraph.

Which interpretation is correct?

Regards,
Rishav
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New post 23 Mar 2019, 03:29
Q 1. The primary purpose of the passage is to ?
Answer - C
Passage describes the history of bank on america's economy in late eighties and early nineties.
Thus Answer is C.
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New post 13 Apr 2019, 02:26
1
rish2708 wrote:
Hello abhimahna , GMATNinja and experts,

I have a small query regarding last question of the passage:
we know that qualify could either mean support or a criticism ( limiting)

Luckily option D is true for both interpretations:
It qualifies the claim by a school of Historians mentioned in 1st para that only a few sections of people benefited from banks.

It also qualifies the claim made by other historians such as PG mentioned in another paragraph.

Which interpretation is correct?

Regards,
Rishav

Interesting question! Here, "qualify" means to "add reservations to" or to "make less absolute."

Take another look at answer choice (D):
Quote:
D. It qualifies a claim made earlier in the passage about the impact of banks on the American economy in the early nineteenth century.

The "claim" referenced in this answer choice is that " the expansion and democratization of credit in the early nineteenth century became the driving force of the American economy."

Now take a look at the last sentence of the passage:
Quote:
The exception, such historians argue, was in the South; here, the overwhelmingly agrarian nature of the economy generated outright opposition to banks, which were seen as monopolistic institutions controlled by an elite group of planters.

By introducing this fact as "the exception," the author is telling us that he/she is making the claim less absolute. So, by examining an exception, the author is "qualifying" the claim.

I hope that helps!
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New post 13 Apr 2019, 03:09
GMATNinja wrote:
rish2708 wrote:
Hello abhimahna , GMATNinja and experts,

I have a small query regarding last question of the passage:
we know that qualify could either mean support or a criticism ( limiting)

Luckily option D is true for both interpretations:
It qualifies the claim by a school of Historians mentioned in 1st para that only a few sections of people benefited from banks.

It also qualifies the claim made by other historians such as PG mentioned in another paragraph.

Which interpretation is correct?

Regards,
Rishav

Interesting question! Here, "qualify" means to "add reservations to" or to "make less absolute."

Take another look at answer choice (D):
Quote:
D. It qualifies a claim made earlier in the passage about the impact of banks on the American economy in the early nineteenth century.

The "claim" referenced in this answer choice is that " the expansion and democratization of credit in the early nineteenth century became the driving force of the American economy."

Now take a look at the last sentence of the passage:
Quote:
The exception, such historians argue, was in the South; here, the overwhelmingly agrarian nature of the economy generated outright opposition to banks, which were seen as monopolistic institutions controlled by an elite group of planters.

By introducing this fact as "the exception," the author is telling us that he/she is making the claim less absolute. So, by examining an exception, the author is "qualifying" the claim.

I hope that helps!


Thank you!! It seems GMAT loves Qualify a claim :)
I have seen many question that hinges on the definition of Qualify in many of the official passages. Especially the difference of Qualify and Refute and this explanation of yours is certainly gonna help
Regards,
Rishav
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Re: Historians remain divided over the role of banks in facilitating eco   [#permalink] 13 Apr 2019, 03:09

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