rad1601 wrote:
Hi all,
Could someone help me understand why choice C is wrong? I think it would be helpful to know if there are already laws in place restricting margin loans. I understand the presence of "more stringent laws" implies that there are some laws in place, but we do not know if they are specific to margin loans.
Furthermore, choice E implies to examine factors making the comparison less meaningful - there could be such factors, however "less meaningful" does not make the claim entirely irrelevant - a factor could make the comparison less meaningful, but the recommendation could still be useful to prevent a scenario like Country Z.
Kudos to any explanation on this. Thanks
This statement "
if more stringent laws restricting margin loans are not enacted promptly" clearly implies that there already exist some laws restricting margin loans in Country Y, but, according to the author, they are not as strict as or they are not as strictly enforced as they should be in order to prevent a situation similar to a situation that occurred in Country Z.
(C) Does Country Y currently have
any laws on its books regarding margin loans?
Option C does not help because we already know this from the passage. But are these laws stringent enough to prevent the given situation? Neither this is explicitly stated in option C nor we can infer this information from it. Therefore, it is not helpful. That was my reasoning for eliminating C.