Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 1811:00 AM PST
-12:00 PM PST
Join us in a live GMAT practice session and solve 30 challenging GMAT questions with other test takers in timed conditions, covering GMAT Quant, Data Sufficiency, Data Insights, Reading Comprehension, and Critical Reasoning questions.
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
15 Jul 2016, 11:45
Kudos
Bookmarks
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
80% (01:36) correct
20%
(01:50)
wrong
based on 1180
sessions
History
Date
Time
Result
Not Attempted Yet
In order to improve the long-term savings rate of its citizens, Levaska’s government has decided to introduce special savings accounts, Citizens can save up to $3,000 a year in special accounts without having to pay tax on the interest, unless they withdraw money from the account before they reach the age of sixty-five. If they do withdraw any money before that age, they have to pay tax on the accumulated interest and a penalty.
Which of the following, if true, most seriously threatens the success of the government’s plan?
A. The banks and financial institutions where the special accounts will be held lobbled hard for their introduction.
B. Nearly all workers in Levaska can already save money in tax-free accounts through their workplace.
C. For the past ten years, Levaskans have been depositing an ever smaller percentage of their income in long-term savings.
D. Many Levaskans continue to work beyond the age of sixty-five.
E. In certain circumstances, such as a serious illness, the government plans to waive the penalty on early withdrawals from the special accounts.
Which of the following, if true, most seriously threatens the success of the government’s plan?
A. The banks and financial institutions where the special accounts will be held lobbled hard for their introduction.
B. Nearly all workers in Levaska can already save money in tax-free accounts through their workplace.
C. For the past ten years, Levaskans have been depositing an ever smaller percentage of their income in long-term savings.
D. Many Levaskans continue to work beyond the age of sixty-five.
E. In certain circumstances, such as a serious illness, the government plans to waive the penalty on early withdrawals from the special accounts.
Could anyone please help me in how B is suffice, as it just considers only workers but the answer should address all citizens
15 Jul 2016, 12:20
Kudos
Bookmarks
A. The banks and financial institutions where the special accounts will be held lobbled hard for their introduction. - Incorrect. Can't deduce the effect of this option on the success of the government plan.
B. Nearly all workers in Levaska can already save money in tax-free accounts through their workplace. - Correct. If most of the workers are already able to save through their workplace, only few workers will opt for the government plan, hampering the plan's success.
C. For the past ten years, Levaskans have been depositing an ever smaller percentage of their income in long-term savings. - Incorrect. Irrelevant. Relationship between the plan's success and performance of deposits in the past 10 years cannot be established.
D. Many Levaskans continue to work beyond the age of sixty-five. - Incorrect - Irrelevant
E. In certain circumstances, such as a serious illness, the government plans to waive the penalty on early withdrawals from the special accounts. - Incorrect. Out of context
Answer: B
PS: Its important to choose the best option from the given options. Option B weakens the government's plan even though the option uses the word 'workers' instead of 'citizens'.
Almost similar question from GMAT Prep but with a different answer :): five-years-ago-as-part-of-a-plan-to-encourage-citizens-of-63930.html
B. Nearly all workers in Levaska can already save money in tax-free accounts through their workplace. - Correct. If most of the workers are already able to save through their workplace, only few workers will opt for the government plan, hampering the plan's success.
C. For the past ten years, Levaskans have been depositing an ever smaller percentage of their income in long-term savings. - Incorrect. Irrelevant. Relationship between the plan's success and performance of deposits in the past 10 years cannot be established.
D. Many Levaskans continue to work beyond the age of sixty-five. - Incorrect - Irrelevant
E. In certain circumstances, such as a serious illness, the government plans to waive the penalty on early withdrawals from the special accounts. - Incorrect. Out of context
Answer: B
PS: Its important to choose the best option from the given options. Option B weakens the government's plan even though the option uses the word 'workers' instead of 'citizens'.
Almost similar question from GMAT Prep but with a different answer :): five-years-ago-as-part-of-a-plan-to-encourage-citizens-of-63930.html
RaghavSingla
Joined: 27 Jan 2013
Last visit: 10 Jun 2020
Posts: 84
Given Kudos: 41
Location: India
Schools: EDHEC Sept Intake"17 (A)
GMAT 1: 700 Q49 V35
GPA: 3.7
15 Jul 2016, 15:12
Kudos
Bookmarks
In order to improve the long-term savings rate of its citizens, Levaska’s government has decided to introduce special savings accounts, Citizens can save up to $3,000 a year in special accounts without having to pay tax on the interest, unless they withdraw money from the account before they reach the age of sixty-five. If they do withdraw any money before that age, they have to pay tax on the accumulated interest and a penalty.
Which of the following, if true, most seriously threatens the success of the government’s plan?
Solution: Any point that would show that people would not be putting money in govt. savings account would be the correct answer. It is sufficient to show that 4 options are incorrect rather than validating the correct option's correctness fully.
A. The banks and financial institutions where the special accounts will be held lobbied hard for their introduction. ---> IRRELEVANT. Doesn't affects argument in any way.
B. Nearly all workers in Levaska can already save money in tax-free accounts through their workplace. ---> Correct. If the people already have an existing facility to put money, why would they choose govt accounts?
C. For the past ten years, Levaskans have been depositing an ever smaller percentage of their income in long-term savings. ---> Incorrect. Since people can save 'up to' $3000, it doesn't matters if they save $1 or $3000 per year.
D. Many Levaskans continue to work beyond the age of sixty-five. --> IRRELEVANT. Doesn't affects argument in any way.
E. In certain circumstances, such as a serious illness, the government plans to waive the penalty on early withdrawals from the special accounts. --> Incorrect. Is a strengthener in fact because it gives people incentive to put money in govt. account.
Which of the following, if true, most seriously threatens the success of the government’s plan?
Solution: Any point that would show that people would not be putting money in govt. savings account would be the correct answer. It is sufficient to show that 4 options are incorrect rather than validating the correct option's correctness fully.
A. The banks and financial institutions where the special accounts will be held lobbied hard for their introduction. ---> IRRELEVANT. Doesn't affects argument in any way.
B. Nearly all workers in Levaska can already save money in tax-free accounts through their workplace. ---> Correct. If the people already have an existing facility to put money, why would they choose govt accounts?
C. For the past ten years, Levaskans have been depositing an ever smaller percentage of their income in long-term savings. ---> Incorrect. Since people can save 'up to' $3000, it doesn't matters if they save $1 or $3000 per year.
D. Many Levaskans continue to work beyond the age of sixty-five. --> IRRELEVANT. Doesn't affects argument in any way.
E. In certain circumstances, such as a serious illness, the government plans to waive the penalty on early withdrawals from the special accounts. --> Incorrect. Is a strengthener in fact because it gives people incentive to put money in govt. account.
