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11 May 2021, 03:45
Kudos
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Hoozan
Hi Hoozan, not sure if you had a chance to go thru this post, which specifically answers this question.
19 May 2021, 14:43
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Hello GMATNinja and experts,
In Q4,does "small minority of the people" in option "A" refers to "elite group of
planters" ?If this is so,I have one query,nowhere in the passage it is written that "elite group of planters" constitutes a small percentage of population?
If I am interpreting it wrong,please explain option "A"
Thank you
In Q4,does "small minority of the people" in option "A" refers to "elite group of
planters" ?If this is so,I have one query,nowhere in the passage it is written that "elite group of planters" constitutes a small percentage of population?
If I am interpreting it wrong,please explain option "A"
Thank you
01 Nov 2021, 22:43
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The primary purpose of the passage is to
A. compare the economic role played by southern banks with the economic role played by banks in the rest of the United States during the late eighteenth and early nineteenth centuries The role of the southern banks is just one aspect of the whole passage. Not the entire purpose.
B. reevaluate a conventional interpretation of the role played by banks in the American economy during the late eighteenth and early nineteenth centuries The author has not presented his opinion in this passage. So there is no question of “reevaluating”. Also, we are not sure what “conventional interpretation” includes.
C. present different interpretations of the role played by banks in the American economy during the late eighteenth and early nineteenth centuries Different interpretations have been discussed
D. analyze how the increasing number of banks in the late eighteenth and early nineteenth centuries affected the American economy The author has not referred about the number of banks.
E. examine how scholarly opinion regarding the role played by banks in the American economy during the late eighteenth and early nineteenth centuries has changed over time This passage is not addressing how scholarly opinion have changed over time. It’s just referring to two separate opinions.
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
A. these projects, being well established and well capitalized, did not need substantial long-term financing from banks The last sentence of the first paragraph mentions that manufacturing and transportation projects required greater expenditure in the form of capital. This means they needed long-term financing.
B. these projects entailed a level of risk that was too great for banks' conservative lending practices The last sentence of the first paragraph, states that financial institutions (such as banks) followed conservative lending practices and shunned risky projects such as manufacturing and transportation projects. This implies that banks would prefer less risky projects.
C. banks preferred to invest in other, more speculative projects that offered the potential for higher returns There is no information from which we can infer that there were higher returns.
D. bank managers believed that these projects would be unlikely to contribute significantly to economic growth in the new country No reference to bank managers
E. bank managers believed funding these projects would result in credit being extended to too many borrowers No reference to bank managers
The passage suggests that Paul Gilje would be most likely to agree with which of the following claims about the lending practices of the "earliest banks“?
A. These lending practices were unlikely to generate substantial profits for banks. No reference to profits for banks
B. These lending practices only benefited a narrow sector of the economy. The passage states that Gilje was of the opinion that “banks began furnishing large amounts of capital to transportation and industrial enterprises.”
C. The restrictive nature of these lending practices generated significant opposition outside of the South. No reference to generating opposition outside the South
D. The restrictive nature of these lending practices forced state legislatures to begin granting more bank charters by the early nineteenth century. The passage mentions that “state legislatures began granting more bank charters”. This doesn’t mean the state legislatures were forced.
E. These lending practices were likely to be criticized by economic elites as being overly restrictive. All that has been mentioned about the economic elite is that the banks in the South were controlled by them.
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 Since these banks were controlled by the economically elite, these banks only benefitted the elite.
B. did not support the interests of elite planters The passage implies the opposite
C. were too closely tied to transportation and industrial interests No reference to the ties that the banks in the South had to transportation and industrial interests
D. were unwilling to issue the long-term loans required by agrarian interests No reference to the unwillingness to issue long-term loans
E. were too willing to lend credit widely The passage implies the opposite
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 the sentence highlighted in red. Line 5 says that banks played a minor role in the growth of the economy. The last line implies that the banks in the South only catered to economically elite, which could imply that these banks only played a minor role by catering to a small segment. So it is not being undermined.
B. It resolves a conflict over the role of banks summarized in the first paragraph. The first paragraph does not present any conflict in the role of banks. The conflict is only presented in the second paragraph.
C. It clarifies some of the reasons state legislatures began granting more bank charters. State legislatures have been mentioned only to point out that the supply of credit rose. No reference to the elite group mentioned in the last line.
D. It qualifies a claim made earlier in the passage about the impact of banks on the American economy in the early nineteenth century. “Qualify” implies to make something less extreme as an exception is presented. Earlier in the passage, it was stated that the banks were crucial in transforming the early national economy. The last sentence of the passage states the exception to this general trend
E. It supports a claim made earlier in the passage about how the expansion of credit affected the economy. The last line is not talking about expanding credit. In contrast, it refers to curtailing it.
- Nitha Jay
A. compare the economic role played by southern banks with the economic role played by banks in the rest of the United States during the late eighteenth and early nineteenth centuries The role of the southern banks is just one aspect of the whole passage. Not the entire purpose.
B. reevaluate a conventional interpretation of the role played by banks in the American economy during the late eighteenth and early nineteenth centuries The author has not presented his opinion in this passage. So there is no question of “reevaluating”. Also, we are not sure what “conventional interpretation” includes.
C. present different interpretations of the role played by banks in the American economy during the late eighteenth and early nineteenth centuries Different interpretations have been discussed
D. analyze how the increasing number of banks in the late eighteenth and early nineteenth centuries affected the American economy The author has not referred about the number of banks.
E. examine how scholarly opinion regarding the role played by banks in the American economy during the late eighteenth and early nineteenth centuries has changed over time This passage is not addressing how scholarly opinion have changed over time. It’s just referring to two separate opinions.
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
A. these projects, being well established and well capitalized, did not need substantial long-term financing from banks The last sentence of the first paragraph mentions that manufacturing and transportation projects required greater expenditure in the form of capital. This means they needed long-term financing.
B. these projects entailed a level of risk that was too great for banks' conservative lending practices The last sentence of the first paragraph, states that financial institutions (such as banks) followed conservative lending practices and shunned risky projects such as manufacturing and transportation projects. This implies that banks would prefer less risky projects.
C. banks preferred to invest in other, more speculative projects that offered the potential for higher returns There is no information from which we can infer that there were higher returns.
D. bank managers believed that these projects would be unlikely to contribute significantly to economic growth in the new country No reference to bank managers
E. bank managers believed funding these projects would result in credit being extended to too many borrowers No reference to bank managers
The passage suggests that Paul Gilje would be most likely to agree with which of the following claims about the lending practices of the "earliest banks“?
A. These lending practices were unlikely to generate substantial profits for banks. No reference to profits for banks
B. These lending practices only benefited a narrow sector of the economy. The passage states that Gilje was of the opinion that “banks began furnishing large amounts of capital to transportation and industrial enterprises.”
C. The restrictive nature of these lending practices generated significant opposition outside of the South. No reference to generating opposition outside the South
D. The restrictive nature of these lending practices forced state legislatures to begin granting more bank charters by the early nineteenth century. The passage mentions that “state legislatures began granting more bank charters”. This doesn’t mean the state legislatures were forced.
E. These lending practices were likely to be criticized by economic elites as being overly restrictive. All that has been mentioned about the economic elite is that the banks in the South were controlled by them.
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 Since these banks were controlled by the economically elite, these banks only benefitted the elite.
B. did not support the interests of elite planters The passage implies the opposite
C. were too closely tied to transportation and industrial interests No reference to the ties that the banks in the South had to transportation and industrial interests
D. were unwilling to issue the long-term loans required by agrarian interests No reference to the unwillingness to issue long-term loans
E. were too willing to lend credit widely The passage implies the opposite
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 the sentence highlighted in red. Line 5 says that banks played a minor role in the growth of the economy. The last line implies that the banks in the South only catered to economically elite, which could imply that these banks only played a minor role by catering to a small segment. So it is not being undermined.
B. It resolves a conflict over the role of banks summarized in the first paragraph. The first paragraph does not present any conflict in the role of banks. The conflict is only presented in the second paragraph.
C. It clarifies some of the reasons state legislatures began granting more bank charters. State legislatures have been mentioned only to point out that the supply of credit rose. No reference to the elite group mentioned in the last line.
D. It qualifies a claim made earlier in the passage about the impact of banks on the American economy in the early nineteenth century. “Qualify” implies to make something less extreme as an exception is presented. Earlier in the passage, it was stated that the banks were crucial in transforming the early national economy. The last sentence of the passage states the exception to this general trend
E. It supports a claim made earlier in the passage about how the expansion of credit affected the economy. The last line is not talking about expanding credit. In contrast, it refers to curtailing it.
- Nitha Jay
