It is currently 24 Nov 2017, 04:46

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

Historians remain divided over the role of banks in facilitating eco

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Top Contributor
6 KUDOS received
Director
Director
User avatar
B
Status: I don't stop when I'm Tired,I stop when I'm done
Joined: 11 May 2014
Posts: 564

Kudos [?]: 2943 [6], given: 220

Location: Bangladesh
Concentration: Finance, Leadership
GPA: 2.81
WE: Business Development (Real Estate)
Historians remain divided over the role of banks in facilitating eco [#permalink]

Show Tags

New post 26 Jul 2016, 13:57
6
This post received
KUDOS
Top Contributor
2
This post was
BOOKMARKED
Question 1
00:00
A
B
C
D
E

Question Stats:

83% (01:53) correct 17% (01:47) wrong based on 620

HideShow timer Statistics

Question 2
00:00
A
B
C
D
E

Question Stats:

87% (00:48) correct 13% (00:38) wrong based on 601

HideShow timer Statistics

Question 3
00:00
A
B
C
D
E

Question Stats:

64% (01:00) correct 36% (01:13) wrong based on 603

HideShow timer Statistics

Question 4
00:00
A
B
C
D
E

Question Stats:

67% (00:34) correct 33% (00:55) wrong based on 600

HideShow timer Statistics

Question 5
00:00
A
B
C
D
E

Question Stats:

50% (01:17) correct 50% (01:13) wrong based on 579

HideShow timer Statistics

OG 2017 New RC
Line
    Historians remain divided over the role of
    banks in facilitating economic growth in the
    United States in the late eighteenth and early
    nineteenth centuries. Some scholars contend
(5)
    that banks played a minor role in the nation’s
    growing economy. Financial institutions, they
    argue, appeared only after the economy had
    begun to develop, and once organized, followed
    conservative lending practices, providing aid to
(10)
    established commercial enterprises but
    shunning those, such as manufacturing and
    transportation projects, that were more
    uncertain and capital-intensive (i.e., requiring
    greater expenditures in the form of capital than in
(15)
    labor).
    A growing number of historians argue, in
    contrast, that banks were crucial in transforming
    the early national economy. When state
    legislatures began granting more bank charters
(20)
    in the 1790s and early 1800s, the supply of
    credit rose accordingly. Unlike the earliest banks,
    which had primarily provided short-term loans to
    well-connected merchants, the banks of the early
    nineteenth century issued credit widely. As Paul
(25)
    Gilje asserts, the expansion and democratization
    of credit in the early nineteenth century became
    the driving force of the American economy, as
    banks began furnishing large amounts of capital
    to transportation and industrial enterprises. The
(30)
    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
(35)
    planters.
(Book Question: 419)
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
B. reevaluate a conventional interpretation of the role played by banks in the American economy during the late eighteenth and early nineteenth centuries
C. present different interpretations of the role played by banks in the American economy during the late eighteenth and early nineteenth centuries
D. analyze how the increasing number of banks in the late eighteenth and early nineteenth centuries affected the American economy
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

[Reveal] Spoiler:
C

(Book Question: 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
A. these projects, being well established and well capitalized, did not need substantial long-term financing from banks
B. these projects entailed a level of risk that was too great for banks’ conservative lending practices
C. banks preferred to invest in other, more speculative projects that offered the potential for higher returns
D. bank managers believed that these projects would be unlikely to contribute significantly to economic growth in the new country
E. bank managers believed funding these projects would result in credit being extended to too many borrowers

[Reveal] Spoiler:
B

(Book Question: 421)
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” (see line 21)?
A. These lending practices were unlikely to generate substantial profits for banks.
B. These lending practices only benefited a narrow sector of the economy.
C. The restrictive nature of these lending practices generated significant opposition outside of the South.
D. The restrictive nature of these lending practices forced state legislatures to begin granting more bank charters by the early nineteenth century.
E. These lending practices were likely to be criticized by economic elites as being overly restrictive.

[Reveal] Spoiler:
B

(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

[Reveal] Spoiler:
A

(Book Question: 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.

[Reveal] Spoiler:
D

[Reveal] Spoiler: Question #1 OA
[Reveal] Spoiler: Question #2 OA
[Reveal] Spoiler: Question #3 OA
[Reveal] Spoiler: Question #4 OA
[Reveal] Spoiler: Question #5 OA

_________________

Md. Abdur Rakib

Please Press +1 Kudos,If it helps
Sentence Correction-Collection of Ron Purewal's "elliptical construction/analogies" for SC Challenges

Kudos [?]: 2943 [6], given: 220

1 KUDOS received
Board of Directors
User avatar
D
Status: Aiming MBA
Joined: 18 Jul 2015
Posts: 2779

Kudos [?]: 922 [1], given: 67

Location: India
GPA: 3.65
WE: Information Technology (Health Care)
Premium Member Reviews Badge
Historians remain divided over the role of banks in facilitating eco [#permalink]

Show Tags

New post 28 Jul 2016, 09:34
1
This post received
KUDOS
1
This post was
BOOKMARKED
I took 6 mins to solve this passage :

C B B A D

Earlier I marked last as B but now realized that South banks example given in the last sentence is parallel to some scholars' claim that bank has little role in the American Economy.
_________________

How I improved from V21 to V40! ?

Kudos [?]: 922 [1], given: 67

Current Student
User avatar
S
Joined: 28 Nov 2014
Posts: 915

Kudos [?]: 212 [0], given: 79

Concentration: Strategy
Schools: Fisher '19 (M)
GPA: 3.71
Reviews Badge
Historians remain divided over the role of banks in facilitating eco [#permalink]

Show Tags

New post 15 Aug 2016, 12:27
Can we please discuss Book Question 421?

Kudos [?]: 212 [0], given: 79

Board of Directors
User avatar
D
Status: Aiming MBA
Joined: 18 Jul 2015
Posts: 2779

Kudos [?]: 922 [0], given: 67

Location: India
GPA: 3.65
WE: Information Technology (Health Care)
Premium Member Reviews Badge
Re: Historians remain divided over the role of banks in facilitating eco [#permalink]

Show Tags

New post 17 Aug 2016, 07:48
Keats wrote:
Can we please discuss Book Question 421?


Option B is supported by the line "Unlike the earliest banks, which had primarily provided short-term loans to well-connected merchants,". Paul discusses about role the expansion of current banks has played. Hence, He would agree that the earlier banks were for a selected group of merchants only.
_________________

How I improved from V21 to V40! ?

Kudos [?]: 922 [0], given: 67

Board of Directors
User avatar
D
Status: Aiming MBA
Joined: 18 Jul 2015
Posts: 2779

Kudos [?]: 922 [0], given: 67

Location: India
GPA: 3.65
WE: Information Technology (Health Care)
Premium Member Reviews Badge
Re: Historians remain divided over the role of banks in facilitating eco [#permalink]

Show Tags

New post 17 Aug 2016, 07:49
Keats wrote:
Can we please discuss Book Question 421?


Option B is supported by the line "Unlike the earliest banks, which had primarily provided short-term loans to well-connected merchants,". Paul discusses about role the expansion of current banks has played. Hence, He would agree that the earlier banks were for a selected group of merchants only.
_________________

How I improved from V21 to V40! ?

Kudos [?]: 922 [0], given: 67

Current Student
User avatar
S
Joined: 28 Nov 2014
Posts: 915

Kudos [?]: 212 [0], given: 79

Concentration: Strategy
Schools: Fisher '19 (M)
GPA: 3.71
Reviews Badge
Re: Historians remain divided over the role of banks in facilitating eco [#permalink]

Show Tags

New post 17 Aug 2016, 07:58
abhimahna wrote:
Keats wrote:
Can we please discuss Book Question 421?


Option B is supported by the line "Unlike the earliest banks, which had primarily provided short-term loans to well-connected merchants,". Paul discusses about role the expansion of current banks has played. Hence, He would agree that the earlier banks were for a selected group of merchants only.


Yes. This helps abhimahna Thanks for attending!

Kudos [?]: 212 [0], given: 79

Senior Manager
Senior Manager
User avatar
G
Joined: 18 Jun 2016
Posts: 267

Kudos [?]: 187 [0], given: 103

Location: India
GMAT 1: 720 Q50 V38
GMAT 2: 750 Q49 V42
GPA: 4
WE: General Management (Other)
GMAT ToolKit User Reviews Badge
Re: Historians remain divided over the role of banks in facilitating eco [#permalink]

Show Tags

New post 04 Sep 2016, 12:25
Somebody please explain why in Q 423, B is wrong.
_________________

I'd appreciate learning about the grammatical errors in my posts

Please hit Kudos If my Solution helps

My Debrief for 750 - https://gmatclub.com/forum/from-720-to-750-one-of-the-most-difficult-pleatues-to-overcome-246420.html

My CR notes - https://gmatclub.com/forum/patterns-in-cr-questions-243450.html

Rest of the Notes coming soon.

Kudos [?]: 187 [0], given: 103

Director
Director
avatar
G
Joined: 21 May 2013
Posts: 542

Kudos [?]: 48 [0], given: 492

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

Show Tags

New post 08 Oct 2016, 07:48
AbdurRakib wrote:
OG 2017 New RC
Line
    Historians remain divided over the role of
    banks in facilitating economic growth in the
    United States in the late eighteenth and early
    nineteenth centuries. Some scholars contend
(5)
    that banks played a minor role in the nation’s
    growing economy. Financial institutions, they
    argue, appeared only after the economy had
    begun to develop, and once organized, followed
    conservative lending practices, providing aid to
(10)
    established commercial enterprises but
    shunning those, such as manufacturing and
    transportation projects, that were more
    uncertain and capital-intensive (i.e., requiring
    greater expenditures in the form of capital than in
(15)
    labor).
    A growing number of historians argue, in
    contrast, that banks were crucial in transforming
    the early national economy. When state
    legislatures began granting more bank charters
(20)
    in the 1790s and early 1800s, the supply of
    credit rose accordingly. Unlike the earliest banks,
    which had primarily provided short-term loans to
    well-connected merchants, the banks of the early
    nineteenth century issued credit widely. As Paul
(25)
    Gilje asserts, the expansion and democratization
    of credit in the early nineteenth century became
    the driving force of the American economy, as
    banks began furnishing large amounts of capital
    to transportation and industrial enterprises. The
(30)
    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
(35)
    planters.
(Book Question: 419)
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
B. reevaluate a conventional interpretation of the role played by banks in the American economy during the late eighteenth and early nineteenth centuries
C. present different interpretations of the role played by banks in the American economy during the late eighteenth and early nineteenth centuries
D. analyze how the increasing number of banks in the late eighteenth and early nineteenth centuries affected the American economy
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
[Reveal] Spoiler:
C

(Book Question: 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
A. these projects, being well established and well capitalized, did not need substantial long-term financing from banks
B. these projects entailed a level of risk that was too great for banks’ conservative lending practices
C. banks preferred to invest in other, more speculative projects that offered the potential for higher returns
D. bank managers believed that these projects would be unlikely to contribute significantly to economic growth in the new country
E. bank managers believed funding these projects would result in credit being extended to too many borrowers
[Reveal] Spoiler:
B

(Book Question: 421)
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” (see line 21)?
A. These lending practices were unlikely to generate substantial profits for banks.
B. These lending practices only benefited a narrow sector of the economy.
C. The restrictive nature of these lending practices generated significant opposition outside of the South.
D. The restrictive nature of these lending practices forced state legislatures to begin granting more bank charters by the early nineteenth century.
E. These lending practices were likely to be criticized by economic elites as being overly restrictive.
[Reveal] Spoiler:
B

(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
[Reveal] Spoiler:
A

(Book Question: 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.
[Reveal] Spoiler:
D



Can someone explain Qs419 and 422? I selected E and E.

Kudos [?]: 48 [0], given: 492

Intern
Intern
avatar
Joined: 14 Sep 2016
Posts: 1

Kudos [?]: [0], given: 42

Location: Philippines
GMAT 1: 690 Q36 V41
GPA: 3.3
WE: Account Management (Internet and New Media)
Re: Historians remain divided over the role of banks in facilitating eco [#permalink]

Show Tags

New post 03 Dec 2016, 02:55
KS15 wrote:
Can someone explain Qs419 and 422? I selected E and E.


My reply's a bit late but hope it still helps! :)

(Book Question: 419)
A. There was no comparison between the role of banks in the South vs the rest of the US.
B. There was no reevaluation of a conventional interpretation presented in the passage.
C. CORRECT -the passage primarily discusses the two opposing views on the role banks played in the US economy in late 18th - early 19th centuries.
D. Although the passage did touch upon the effects of the increasing number of banks, the passage is more concerned on whether banks had any significant effects on the economy in the first place.
E. There was no discussion on how scholarly opinion has changed; the passage just outright presents the two opposing views on the role of banks.


(Book Question: 422)
A. CORRECT - banks were seen as monopolistic institutions controlled by an elite group of planters.
B. Distorts what was mentioned in the passage.
C. Although it was mentioned that banks began furnishing large amounts of capital to these industries, there was no mention that banks were too closely tied to them nor that this had any effect on agrarian interests in the South.
D. It can be inferred from the passage that banks have began to issue long- term loans, therefore this can't be the reason.
E. Although it was mentioned that banks of the early 19th century issued credit widely , it is not cited as the reason why banks were opposed in the South.

Kudos [?]: [0], given: 42

Manager
Manager
avatar
S
Joined: 24 Jan 2017
Posts: 165

Kudos [?]: 79 [0], given: 106

GMAT 1: 640 Q50 V25
GMAT 2: 710 Q50 V35
GPA: 3.48
Reviews Badge
Historians remain divided over the role of banks in facilitating eco [#permalink]

Show Tags

New post 24 Apr 2017, 01:09
umg wrote:
Somebody please explain why in Q 423, B is wrong.


This is my understanding on Q423. Hope this helps.

B. It resolves a conflict over the role of banks summarized in the first paragraph
=> As far as I'm concerned, when a statement resolves a conflict, it must explain why 2 conflicting ideas are both true (As with the case of Resolving the Paradox). The last sentence does, however, not do that function.

"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"


=> Indicated by "the exception" and its meaning, the last sentence undermines the 2nd point made by "a growing number of historians" in line 16.
That's why D is correct.

Last edited by Lucy Phuong on 11 Jun 2017, 21:34, edited 2 times in total.

Kudos [?]: 79 [0], given: 106

3 KUDOS received
Intern
Intern
avatar
B
Joined: 25 Feb 2017
Posts: 47

Kudos [?]: 8 [3], given: 30

GMAT 1: 720 Q50 V38
GPA: 3.67
Reviews Badge
Re: Historians remain divided over the role of banks in facilitating eco [#permalink]

Show Tags

New post 03 May 2017, 19:31
3
This post received
KUDOS
1
This post was
BOOKMARKED
(Book Question: 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.


Jut my 2 cents.

On D, "qualifies" means to add limitations or conditions.
This is true for all usage of the word "qualify" on gmat, I think.

Hope this helps.

Kudos [?]: 8 [3], given: 30

Intern
Intern
avatar
B
Joined: 28 Sep 2016
Posts: 11

Kudos [?]: 1 [0], given: 34

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

Show Tags

New post 06 Jun 2017, 20:08
GMATNinja
Please help in explaining the second and last questions this passage.. Your help is much appreciated

Kudos [?]: 1 [0], given: 34

Expert Post
2 KUDOS received
GMAT Club Verbal Expert
User avatar
G
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 1190

Kudos [?]: 1903 [2], given: 454

Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: 340 Q170 V170
Re: Historians remain divided over the role of banks in facilitating eco [#permalink]

Show Tags

New post 11 Jun 2017, 16:53
2
This post received
KUDOS
Expert's post
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!
_________________

GMAT Club Verbal Expert | GMAT/GRE tutor at www.gmatninja.com (Now hiring!) | GMAT blog | Food blog | Friendly warning: I'm bad at PMs

GMAT Ninja Wednesdays LIVE on YouTube
Join us, and ask your questions in advance!

Beginners' guides to GMAT verbal
Reading Comprehension | Critical Reasoning | Sentence Correction

SC & CR Questions of the Day (QOTDs), featuring expert explanations
All QOTDs | Subscribe via email | RSS

Need an expert reply?
Hit the request verbal experts' reply button -- and please be specific about your question. Feel free to tag @GMATNinja and @GMATNinjaTwo in your post.

Sentence Correction articles & resources
How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

Reading Comprehension, Critical Reasoning, and other articles & resources
All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for $29.99... in any section order

YouTube verbal webinars:
"Next-level" GMAT pronouns | Uses of "that" on the GMAT | Parallelism and meaning | Simplifying GMAT verb tenses | Comparisons, part I |
November webinar schedule

Kudos [?]: 1903 [2], given: 454

Senior Manager
Senior Manager
User avatar
S
Joined: 03 Apr 2013
Posts: 279

Kudos [?]: 44 [0], given: 856

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

Show Tags

New post 12 Oct 2017, 06:52
Hi abhimahna IanStewart
This is for Q423. I had a confusion between D and E. I finally chose E. Here's what made me do so. Earlier in the passage, the first group of historians blamed the banks for offering credit only to elite and well established businesses. I thnk the kast sentence supports this claim by pointing out that in the South, the banks were seen as elite controlled institutions. Please explain. Also, am I missing a "key strategy about attempting such questions"? Please advise.

Posted from my mobile device
_________________

Spread some love..Like = +1 Kudos :)

Kudos [?]: 44 [0], given: 856

Expert Post
GMAT Club Verbal Expert
User avatar
G
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 1190

Kudos [?]: 1903 [0], given: 454

Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: 340 Q170 V170
Re: Historians remain divided over the role of banks in facilitating eco [#permalink]

Show Tags

New post 19 Oct 2017, 21:33
ShashankDave wrote:
Hi abhimahna IanStewart
This is for Q423. I had a confusion between D and E. I finally chose E. Here's what made me do so. Earlier in the passage, the first group of historians blamed the banks for offering credit only to elite and well established businesses. I thnk the kast sentence supports this claim by pointing out that in the South, the banks were seen as elite controlled institutions. Please explain. Also, am I missing a "key strategy about attempting such questions"? Please advise.


Quote:
(Book Question: 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 first group of historians argued that financial institutions provided aid to established commercial enterprises. This does not say that the banks themselves are "established" or "elite". Rather, it just says that the banks provided aid to established commercial enterprises. The last sentence, on the other hand, says that the banks were controlled by an elite group of planters. The last part talks about who was running the banks, not who was receiving aid from the banks.

Furthermore, the first claim you mentioned doesn't really talk about "how the expansion of credit affected the economy." It simply tells us who, according to the first group of historians, received aid from the banks.

As for choice (D), 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? Yup -- 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!
_________________

GMAT Club Verbal Expert | GMAT/GRE tutor at www.gmatninja.com (Now hiring!) | GMAT blog | Food blog | Friendly warning: I'm bad at PMs

GMAT Ninja Wednesdays LIVE on YouTube
Join us, and ask your questions in advance!

Beginners' guides to GMAT verbal
Reading Comprehension | Critical Reasoning | Sentence Correction

SC & CR Questions of the Day (QOTDs), featuring expert explanations
All QOTDs | Subscribe via email | RSS

Need an expert reply?
Hit the request verbal experts' reply button -- and please be specific about your question. Feel free to tag @GMATNinja and @GMATNinjaTwo in your post.

Sentence Correction articles & resources
How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

Reading Comprehension, Critical Reasoning, and other articles & resources
All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for $29.99... in any section order

YouTube verbal webinars:
"Next-level" GMAT pronouns | Uses of "that" on the GMAT | Parallelism and meaning | Simplifying GMAT verb tenses | Comparisons, part I |
November webinar schedule

Kudos [?]: 1903 [0], given: 454

Re: Historians remain divided over the role of banks in facilitating eco   [#permalink] 19 Oct 2017, 21:33
Display posts from previous: Sort by

Historians remain divided over the role of banks in facilitating eco

  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 | Emoji artwork provided by EmojiOne

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®.