GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 21 Nov 2018, 04:09

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 in November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
  • All GMAT Club Tests are Free and open on November 22nd in celebration of Thanksgiving Day!

     November 22, 2018

     November 22, 2018

     10:00 PM PST

     11:00 PM PST

    Mark your calendars - All GMAT Club Tests are free and open November 22nd to celebrate Thanksgiving Day! Access will be available from 0:01 AM to 11:59 PM, Pacific Time (USA)
  • Free lesson on number properties

     November 23, 2018

     November 23, 2018

     10:00 PM PST

     11:00 PM PST

    Practice the one most important Quant section - Integer properties, and rapidly improve your skills.

In the 1960s, Northwestern University sociologist John McKnight coined

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

Hide Tags

Senior Manager
Senior Manager
User avatar
P
Joined: 23 Jun 2012
Posts: 385
Location: Pakistan
Concentration: Strategy, International Business
GPA: 3.76
GMAT ToolKit User Reviews Badge CAT Tests
In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

Show Tags

New post Updated on: 29 Oct 2018, 20:56
2
Question 1
00:00
A
B
C
D
E

based on 102 sessions

86% (02:39) correct 14% (03:15) wrong

HideShow timer Statistics

Question 2
00:00
A
B
C
D
E

based on 89 sessions

88% (00:51) correct 12% (01:13) wrong

HideShow timer Statistics

Question 3
00:00
A
B
C
D
E

based on 91 sessions

38% (01:01) correct 62% (01:09) wrong

HideShow timer Statistics

In the 1960s, Northwestern University sociologist John McKnight coined the term redlining, the practice of denying or severely limiting service to customers in particular geographic areas, often determined by the racial composition of the neighborhood. The term came from the practice of banks outlining certain areas in red on a map; within the red outline, banks refused to invest. With no access to mortgages, residents within the red line suffered low property values and landlord abandonment; buildings abandoned by landlords were then more likely to become centers of drug dealing and other crime, thus further lowering property values.

Redlining in mortgage lending was made illegal by the Fair Housing Act of 1968, which prohibited such discrimination based on race, religion, gender, familial status, disability, or ethnic origin, and by community reinvestment legislation in the 1970s. However, redlining has sometimes continued in less explicit ways, and can also take place in the context of constrained access to health care, jobs, insurance, and more. Even today, some credit card companies send different offers to homes in different neighborhoods, and some auto insurance companies 15 offer different rates based on zip code.

Redlining can lead to reverse redlining, which occurs when predatory businesses specifically target minority or low income consumers for the purpose of charging them more than would typically be charged for a particular service. When mainstream retailers refuse to serve a certain area, people in that area can fall prey to opportunistic smaller retailers who sell inferior goods at higher prices.

1. Which of the following, not mentioned in the passage, would qualify as an example of reverse redlining as defined in the passage?

(A) A bank refuses to offer mortgages to consumers in certain neighborhoods.
(B) Residents of low-income neighborhoods are less likely to be hired for positions than residents of higher-income neighborhoods, even when the applicants have the same qualifications.
(C) Police respond to reports of crimes more quickly in some neighborhoods than in others.
(D) A grocery store in a low-income neighborhood sells low-quality produce for high prices, knowing that most residents do not have the ability to buy elsewhere.
(E) An auto insurance company hires an African American spokesperson in a bid to attract more African American consumers.



2. Which correctly describes a sequence of events presented in the passage?

(A) Subprime mortgages lead to widespread defaults, which lead to landlord abandonment.
(B) Reverse redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing.
(C) Landlord abandonment leads to redlining, which leads to crime and drug dealing.
(D) Redlining leads to reverse redlining, which leads to constrained access to health care, jobs, insurance, and more.
(E) Redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing.



3. Which of the following can be inferred from the passage?
i) Redlining ceased with the passing of the Fair Housing Act in 1968.
ii)Providing services based on zip code may be a form of redlining.
iii)Access to mortgages is related to higher property values
a) i only
b) ii only
c) iii only
d) i & ii only
e) ii and iii Only



_________________

Push yourself again and again. Don't give an inch until the final buzzer sounds. -Larry Bird
Success isn't something that just happens - success is learned, success is practiced and then it is shared. -Sparky Anderson
-S


Originally posted by sananoor on 09 Oct 2018, 09:01.
Last edited by workout on 29 Oct 2018, 20:56, edited 1 time in total.
Formatted, added timers
Senior Manager
Senior Manager
User avatar
P
Joined: 23 Jun 2012
Posts: 385
Location: Pakistan
Concentration: Strategy, International Business
GPA: 3.76
GMAT ToolKit User Reviews Badge CAT Tests
Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

Show Tags

New post 09 Oct 2018, 09:19
GMATNinja
I need ur help with question 3
it is given in passage that "With no access to mortgages, residents within the red line suffered low property values and landlord abandonment"
from this statement can we access that "Access to mortgages is related to higher property values" isnt it tooo extreme? is the reverse of a statement from the passage is possible?
_________________

Push yourself again and again. Don't give an inch until the final buzzer sounds. -Larry Bird
Success isn't something that just happens - success is learned, success is practiced and then it is shared. -Sparky Anderson
-S

MBA Section Director
User avatar
D
Affiliations: GMATClub
Joined: 22 May 2017
Posts: 1021
Concentration: Nonprofit
GPA: 4
WE: Engineering (Computer Software)
Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

Show Tags

New post 29 Oct 2018, 21:24

+1 kudos to the posts containing answer explanations of all questions


_________________

New project wSTAT(which Schools To Apply To?)

B-School app with GRE

New - RC Butler - 2 RC's everyday

Manager
Manager
User avatar
B
Joined: 04 Jun 2018
Posts: 61
CAT Tests
Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

Show Tags

New post 29 Oct 2018, 21:42
sananoor wrote:
GMATNinja
I need ur help with question 3
it is given in passage that "With no access to mortgages, residents within the red line suffered low property values and landlord abandonment"
from this statement can we access that "Access to mortgages is related to higher property values" isnt it tooo extreme? is the reverse of a statement from the passage is possible?



I have the same issue. If any of the experts can please pitch in?

daagh
egmat
GMATNinja
LauraOrion
Manager
Manager
avatar
S
Joined: 23 Aug 2016
Posts: 105
Location: India
Concentration: Finance, Strategy
GMAT 1: 660 Q49 V31
GPA: 2.84
WE: Other (Energy and Utilities)
Reviews Badge
Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

Show Tags

New post 29 Oct 2018, 22:46
2
sananoor wrote:
In the 1960s, Northwestern University sociologist John McKnight coined the term redlining, the practice of denying or severely limiting service to customers in particular geographic areas, often determined by the racial composition of the neighborhood. The term came from the practice of banks outlining certain areas in red on a map; within the red outline, banks refused to invest. With no access to mortgages, residents within the red line suffered low property values and landlord abandonment; buildings abandoned by landlords were then more likely to become centers of drug dealing and other crime, thus further lowering property values.

Redlining in mortgage lending was made illegal by the Fair Housing Act of 1968, which prohibited such discrimination based on race, religion, gender, familial status, disability, or ethnic origin, and by community reinvestment legislation in the 1970s. However, redlining has sometimes continued in less explicit ways, and can also take place in the context of constrained access to health care, jobs, insurance, and more. Even today, some credit card companies send different offers to homes in different neighborhoods, and some auto insurance companies 15 offer different rates based on zip code.

Redlining can lead to reverse redlining, which occurs when predatory businesses specifically target minority or low income consumers for the purpose of charging them more than would typically be charged for a particular service. When mainstream retailers refuse to serve a certain area, people in that area can fall prey to opportunistic smaller retailers who sell inferior goods at higher prices.
1. Which of the following, not mentioned in the passage, would qualify as an example of reverse redlining as defined in the passage?

(A) A bank refuses to offer mortgages to consumers in certain neighborhoods.
(B) Residents of low-income neighborhoods are less likely to be hired for positions than residents of higher-income neighborhoods, even when the applicants have the same qualifications.
(C) Police respond to reports of crimes more quickly in some neighborhoods than in others.
(D) A grocery store in a low-income neighborhood sells low-quality produce for high prices, knowing that most residents do not have the ability to buy elsewhere.
(E) An auto insurance company hires an African American spokesperson in a bid to attract more African American consumers.



2. Which correctly describes a sequence of events presented in the passage?

(A) Subprime mortgages lead to widespread defaults, which lead to landlord abandonment.
(B) Reverse redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing.
(C) Landlord abandonment leads to redlining, which leads to crime and drug dealing.
(D) Redlining leads to reverse redlining, which leads to constrained access to health care, jobs, insurance, and more.
(E) Redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing.



3. Which of the following can be inferred from the passage?
i) Redlining ceased with the passing of the Fair Housing Act in 1968.
ii)Providing services based on zip code may be a form of redlining.
iii)Access to mortgages is related to higher property values
a) i only
b) ii only
c) iii only
d) i & ii only
e) ii and iii Only




4:40, All Correct! :)

1. Which of the following, not mentioned in the passage, would qualify as an example of reverse redlining as defined in the passage?

(A) A bank refuses to offer mortgages to consumers in certain neighborhoods.- not a form of Reverse redlining
(B) Residents of low-income neighborhoods are less likely to be hired for positions than residents of higher-income neighborhoods, even when the applicants have the same qualifications.-not a form of Reverse redlining
(C) Police respond to reports of crimes more quickly in some neighborhoods than in others.-not a form of Reverse redlining
(D) A grocery store in a low-income neighborhood sells low-quality produce for high prices, knowing that most residents do not have the ability to buy elsewhere.- True, refer "reverse redlining, which occurs when predatory businesses specifically target minority or low income consumers for the purpose of charging them more than would typically be charged for a particular service..."
(E) An auto insurance company hires an African American spokesperson in a bid to attract more African American consumers.-not a form of Reverse redlining



2. Which correctly describes a sequence of events presented in the passage?

(A) Subprime mortgages lead to widespread defaults, which lead to landlord abandonment.- not "defaults"
(B) Reverse redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing.-Reverse redlining doesn't lead to landlord abandonment.
(C) Landlord abandonment leads to redlining, which leads to crime and drug dealing. -Redlining leads to landlord abandonment not other way around.
(D) Redlining leads to reverse redlining, which leads to constrained access to health care, jobs, insurance, and more.-Redlining doesn't directly lead to reverse redlining.
(E) Redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing- True,.



3. Which of the following can be inferred from the passage?
i) Redlining ceased with the passing of the Fair Housing Act in 1968.-Not ceased, continued in but in different form.

ii)Providing services based on zip code may be a form of redlining.-True, refer "Even today, some credit card companies send different offers to homes in different neighborhoods, and some auto insurance companies 15 offer different rates based on zip code.."

iii)Access to mortgages is related to higher property values-True, refer "With no access to mortgages, residents within the red line suffered low property values and landlord abandonment; buildings abandoned by landlords were then more likely to become centers of drug dealing and other crime, thus further lowering property values.."
a) i only
b) ii only
c) iii only
d) i & ii only
e) ii and iii Only- Correct answer


_________________

Thanks and Regards,

Honneeey.

In former years,Used to run for "Likes", nowadays, craving for "Kudos". :D

Manager
Manager
avatar
S
Joined: 23 Aug 2016
Posts: 105
Location: India
Concentration: Finance, Strategy
GMAT 1: 660 Q49 V31
GPA: 2.84
WE: Other (Energy and Utilities)
Reviews Badge
Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

Show Tags

New post 29 Oct 2018, 22:50
1
nitesh50 wrote:
sananoor wrote:
GMATNinja
I need ur help with question 3
it is given in passage that "With no access to mortgages, residents within the red line suffered low property values and landlord abandonment"
from this statement can we access that "Access to mortgages is related to higher property values" isnt it tooo extreme? is the reverse of a statement from the passage is possible?



I have the same issue. If any of the experts can please pitch in?

daagh
egmat
GMATNinja
LauraOrion


Hi,

Please refer to my explanation, it might help! :)

3. Which of the following can be inferred from the passage?
i) Redlining ceased with the passing of the Fair Housing Act in 1968.-Not ceased, continued in but in different form.

ii)Providing services based on zip code may be a form of redlining.-True, refer "Even today, some credit card companies send different offers to homes in different neighborhoods, and some auto insurance companies 15 offer different rates based on zip code.."

iii)Access to mortgages is related to higher property values-True, refer "With no access to mortgages, residents within the red line suffered low property values and landlord abandonment; buildings abandoned by landlords were then more likely to become centers of drug dealing and other crime, thus further lowering property values.."

It means, No access to mortgages therefore lowering property values.. Now, negating it will furnish" Access to mortgages therefore wont lead to lowering property values.."

Lets go a step further.." Excellent access to mortgages therefore will lead to High property values"

Now, what does the 3 statement imply?

they imply that as access to mortgages changes, so does the property values!

Hope it helps!

a) i only
b) ii only
c) iii only
d) i & ii only
e) ii and iii Only- Correct answer
_________________

Thanks and Regards,

Honneeey.

In former years,Used to run for "Likes", nowadays, craving for "Kudos". :D

Senior Manager
Senior Manager
User avatar
G
Joined: 20 Sep 2016
Posts: 463
GMAT ToolKit User CAT Tests
Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

Show Tags

New post 02 Nov 2018, 20:06
I disagree with Q3
the passage extract - some auto insurance companies 15 offer different rates based on zip code.

option 2 - Providing services based on zip code may be a form of redlining

providing service is not wrong ... differing in services based on based on zip codes is wrong... GMATNinja DmitryFarber .. does "may be " qualify this answer??
Intern
Intern
avatar
Joined: 21 Oct 2018
Posts: 1
In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

Show Tags

New post 03 Nov 2018, 07:44
Hey there! Thanks for posting.

I have to say i strongly disagree with the 3d question's answer. I would go for B.
Indeed, the passage only states that "redlighting involves a lower property value". Does that mean that access to mortgage is related with a higher property value.
No, it only means that access to mortgage CAN AT LEAST ensure the current property value. Considering that the property value would increase is an assumption to me, not a inference.

Can you confirm OA?

Best
Intern
Intern
avatar
B
Joined: 20 Jan 2018
Posts: 22
In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

Show Tags

New post 09 Nov 2018, 20:50
sananoor wrote:
3. Which of the following can be inferred from the passage?
i) Redlining ceased with the passing of the Fair Housing Act in 1968.
ii)Providing services based on zip code may be a form of redlining.
iii)Access to mortgages is related to higher property values
a) i only
b) ii only
c) iii only
d) i & ii only
e) ii and iii Only




workout In the third question, iii) can not be inferred from the following lines "With no access to mortgages, residents within the red line suffered low property values and landlord abandonment; buildings abandoned by landlords were then more likely to become centers of drug dealing and other crime, thus further lowering property values. ".
Just because A leads to B, we can not say that not A wil lead to Not B right? As far as my understanding goes, we can not infer in this way when it comes to GMAT type questions. Can you please help??
Verbal Forum Moderator
User avatar
V
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 2129
Location: India
Concentration: General Management, Strategy
Schools: Kelley '20, ISB '19
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
Re: In the 1960s, Northwestern University sociologist John McKnight coined  [#permalink]

Show Tags

New post 19 Nov 2018, 11:26
1. Which of the following, not mentioned in the passage, would qualify as an example of reverse redlining as defined in the passage?

(A) A bank refuses to offer mortgages to consumers in certain neighborhoods. - Incorrect - this is an example of redlining
(B) Residents of low-income neighborhoods are less likely to be hired for positions than residents of higher-income neighborhoods, even when the applicants have the same qualifications. - Incorrect - this is an example of redlining
(C) Police respond to reports of crimes more quickly in some neighborhoods than in others. - Incorrect
(D) A grocery store in a low-income neighborhood sells low-quality produce for high prices, knowing that most residents do not have the ability to buy elsewhere. - Correct
Redlining can lead to reverse redlining, which occurs when predatory businesses specifically target minority or low income consumers for the purpose of charging them more than would typically be charged for a particular service. When mainstream retailers refuse to serve a certain area, people in that area can fall prey to opportunistic smaller retailers who sell inferior goods at higher prices.

(E) An auto insurance company hires an African American spokesperson in a bid to attract more African American consumers.- Incorrect

2. Which correctly describes a sequence of events presented in the passage?
(E) Redlining leads to landlord abandonment, which leads to the use of buildings for crime and drug dealing. - Correct


3. Which of the following can be inferred from the passage?
i) Redlining ceased with the passing of the Fair Housing Act in 1968. --- Redlining in mortgage lending was made illegal by the Fair Housing Act of 1968
BUT redlining has sometimes continued in less explicit ways, and can also take place in the context of constrained access to health care, jobs, insurance, and more.

ii)Providing services based on zip code may be a form of redlining. --
Even today, some credit card companies send different offers to homes in different neighborhoods, and some auto insurance companies 15 offer different rates based on zip code. -- In case of auto insurance companies different rates based on zip code is specified. If statement 2 was "Providing differing services based on zip code may be a form of redlining", then the auto insurance example would have sufficed.

Q1-Can we infer 2 based on "the practice of denying or severely limiting service to customers in particular geographic areas" in the first paragraph and because statement 2 says may be?

iii)Access to mortgages is related to higher property values --

With no access to mortgages, residents within the red line suffered low property values and landlord abandonment.

No Mortgages--> Low property values
Q2-So with mortgages, the property values can either remain same or rise. So can we surely say that Access to mortgages is correlated to higher property values?


AjiteshArun , GMATNinja , MagooshExpert , GMATGuruNY , VeritasKarishma , ChiranjeevSingh , VeritasPrepBrian , MartyMurray , ccooley , other experts - please enlighten
_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

GMAT Club Bot
Re: In the 1960s, Northwestern University sociologist John McKnight coined &nbs [#permalink] 19 Nov 2018, 11:26
Display posts from previous: Sort by

In the 1960s, Northwestern University sociologist John McKnight coined

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| 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®.