santorasantu wrote:
Investment capital in a 401(k) or Roth IRA, both long-term investments, have low liquidity due to early withdrawal penalties, withdrawal taxes, and the time it takes to consolidate and sell the individual investments within these funds.
(A) Investment capital in a 401(k) or Roth IRA, both long-term investments, have low liquidity
(B) Investment capital in a 401(k) or Roth IRA, both long-term investments, has low liquidity
(C) Investment capital in a 401(k) or Roth IRA, both long-term investments, had low liquidity
(D) Investment capital in a 401(k) or Roth IRA, both long-term investments, are low liquidity
(E) Investment capital in a 401(k) or Roth IRA, both long-term investments, is low liquidity
Source: Dominate GMAT
Answer choice (B) is correct as it uses the singular verb "has" to refer to singular noun "investment capital" and correctly uses the verb "to have."
Answer choice (A) is incorrect as it uses the plural verb "have" to refer to singular noun "investment capital."
Answer choice (C) is incorrect as it uses the past tense verb "had" without any indication that the description of the investments is limited to the past.
Answer choices (D) and (E) are incorrect as they use the verb "to be" to describe how investment capital possesses low liquidity.
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