Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 22 May 2017, 21:13

### 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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Noting that the Federal Reserve had raised a key short-term

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

### Hide Tags

Manhattan GMAT Instructor
Affiliations: ManhattanGMAT
Joined: 21 Jan 2010
Posts: 348
Location: San Francisco
Followers: 518

Kudos [?]: 1415 [0], given: 11

Re: SC GMATPrep 1 Federal Reserve [#permalink]

### Show Tags

30 Jul 2010, 12:07
Hey Noburu,

Yes, it's very confusing. Just remember, if the -ing word is modifying another word, it's not a gerund, but a participle. Gerunds are NOUNS, and participles are ADJECTIVES.

In the phrase "rising rates", "rising" is very clearly modifying "rates". Modifiers can't be nouns, and gerunds are nouns.

In the phrase "the rising of the rates", "of the rates" is a prepositional modifier modifying "the rising", which is not clearly a noun, so it must be a gerund.

Make more sense?

-t
_________________

Tommy Wallach | Manhattan GMAT Instructor | San Francisco

Manhattan GMAT Discount | Manhattan GMAT Reviews

SVP
Joined: 16 Jul 2009
Posts: 1536
Schools: CBS
WE 1: 4 years (Consulting)
Followers: 44

Kudos [?]: 1193 [0], given: 2

Re: SC GMATPrep 1 Federal Reserve [#permalink]

### Show Tags

30 Jul 2010, 13:02
TommyWallach wrote:
Hey Noburu,

Yes, it's very confusing. Just remember, if the -ing word is modifying another word, it's not a gerund, but a participle. Gerunds are NOUNS, and participles are ADJECTIVES.

In the phrase "rising rates", "rising" is very clearly modifying "rates". Modifiers can't be nouns, and gerunds are nouns.

In the phrase "the rising of the rates", "of the rates" is a prepositional modifier modifying "the rising", which is not clearly a noun, so it must be a gerund.

Make more sense?

-t

Sorry Tommy, but I dont see it.

Let me provide another example that may sound familiar to you:

Tracking satellites IS important for the space agency.

According to Manhattan SC, "Tracking" is a Simple Gerund.
This is exactly how I interpret the problem at issue: Rising rates IS...

"The rising of the rates" is of course a Gerund (a complex gerund, as per MSC).

Many thanks in advance.
_________________

The sky is the limit
800 is the limit

GMAT Club Premium Membership - big benefits and savings

SVP
Joined: 16 Jul 2009
Posts: 1536
Schools: CBS
WE 1: 4 years (Consulting)
Followers: 44

Kudos [?]: 1193 [0], given: 2

Re: SC GMATPrep 1 Federal Reserve [#permalink]

### Show Tags

30 Jul 2010, 17:06
TommyWallach wrote:
Hey Nusma,

That's a tough one. We sometime use "it" without a referent, so I'd allow it in answer choice E. An example of this would be "It's crazy how hot it is today." Neither "it" refers to anything, but we allow it (ha!). The bigger problem with E is the "them".

Hope that makes sense!

-t

Hi Tommy,

Aside from the question above regarding gerunds, I have another one regarding the usage of "it".
Above you say that that usage is correct. But in this other post, I understand that you say other thing (specifically when you explain why A is incorrect).
Please, could you clarify this point?

Many thanks in advance.

Here is the link, and below your post.

sc-doubt-81117.html#p734676

Hey All,

Everybody's pretty much talked this one to death, but I got asked by PM to take on one particular issue, so I'll just run through all the answer choices, while I'm here.

97. Although the coordination of monetary policy can help facilitate the orderly financing of existing imbalances, it is unlikely that its effect on their size is significant in the absence of an appropriate fiscal adjustment.
(A) it is unlikely that its effect on their size is significant
PROBLEM: The use of "it" here twice to mean two different things is grammatically unfeasible. The first "it" has no referent (That's the "it" we use to start out clauses, such as "It's crazy how much fire there is in here."), and the second refers to "the coordination..."

(B) it is unlikely that the size of their effect would be significant
PROBLEM: We want to imply the effect on the size of imbalances, not the size of the effect.

(C) affecting their sizes are not likely to be significant
PROBLEM: The subject of "are" here is...what? Maybe "affecting"...doesn't make any sense.

(D) the significance of their effect on its size is unlikely
PROBLEM: We don't mean the significance is unlikely, but that it's unlikely to be significant.

(E) its effect on their size is not likely to be significant
ANSWER: Isn't it pretty? Like in ALL the answer choices, the "its" refers to "the coordination...".

Hope that helps!

-t
_________________

The sky is the limit
800 is the limit

GMAT Club Premium Membership - big benefits and savings

Manhattan GMAT Instructor
Affiliations: ManhattanGMAT
Joined: 21 Jan 2010
Posts: 348
Location: San Francisco
Followers: 518

Kudos [?]: 1415 [0], given: 11

Re: SC GMATPrep 1 Federal Reserve [#permalink]

### Show Tags

31 Jul 2010, 11:17
Hey Noburu,

I'll post the same response in both places, just in case. However, I believe that I'm entirely consistent in these two examples. It's okay to start a sentence/clause with it, as in: "It sure is raining a lot today." Yes, that "it" has no antecedent, but we allow this usage. In the example you cite here, the problem in answer choice A is not the first "it", but the second "it", which could be referring to "coordination" or "orderly financing". Though ambiguity is an issue that GMAT sometimes ignores and sometimes doesn't, it's clearly better here to get rid of that extra pronoun. Remember that we ALSO have a "their", which makes for three pronouns in 8 words (in answer choice A).

Hope that's clearer!

-t
_________________

Tommy Wallach | Manhattan GMAT Instructor | San Francisco

Manhattan GMAT Discount | Manhattan GMAT Reviews

SVP
Joined: 16 Jul 2009
Posts: 1536
Schools: CBS
WE 1: 4 years (Consulting)
Followers: 44

Kudos [?]: 1193 [0], given: 2

Re: SC GMATPrep 1 Federal Reserve [#permalink]

### Show Tags

31 Jul 2010, 12:57
TommyWallach wrote:
Hey Noburu,

I'll post the same response in both places, just in case. However, I believe that I'm entirely consistent in these two examples. It's okay to start a sentence/clause with it, as in: "It sure is raining a lot today." Yes, that "it" has no antecedent, but we allow this usage. In the example you cite here, the problem in answer choice A is not the first "it", but the second "it", which could be referring to "coordination" or "orderly financing". Though ambiguity is an issue that GMAT sometimes ignores and sometimes doesn't, it's clearly better here to get rid of that extra pronoun. Remember that we ALSO have a "their", which makes for three pronouns in 8 words (in answer choice A).

Hope that's clearer!

-t

Perfectly clear now.

Thanks for your time, patience, and kindness!
_________________

The sky is the limit
800 is the limit

GMAT Club Premium Membership - big benefits and savings

Intern
Status: Every achievement is not an end, but the beginning of a new jounrney.
Joined: 13 Sep 2009
Posts: 19
Location: INDIA
Schools: NY Stern, INSEAD, UCLA, Darden
WE 1: Deputy Manager -- Oil & Gas -- Base Refinery Operations
WE 2: Engineer -- Honeywell Process Solutions
Followers: 0

Kudos [?]: 4 [1] , given: 1

Re: SC GMATPrep 1 Federal Reserve [#permalink]

### Show Tags

31 Jul 2010, 13:52
1
This post received
KUDOS
noboru wrote:
TommyWallach wrote:
Hey All,

A gerund is an -ing word that is a NOUN formed from a verb. "The running of the bulls", for example. A participle is an -ing or -ed word that is an ADJECTIVE formed from a verb. If I say "rising interest rates", "rising" is clearly an adjective/participle modifying "interest rates". If I said, "The sun's rising came as a shock", now "rising" has become a noun/gerund. Is that clear?

-tommy

Is not so clear.
"Rising rates is a measure taken by the Federal Reserve to bla bla bla..."
In this case Rising is a gerund, and therefore Singular.

In this SC question, i dont see that "rising" is an adjective modifying rates...

Dear noboru,

I have something to add over here.

"Rising rates is a measure taken by the Federal Reserve to bla bla bla..." - here in order to interpret 'rising' as gerund, it has to be the verb 'raise' i.e. gerund formed by the verb 'raise' - 'raising' because, 'raise' is a transitive verb, needs an object (rates)
therefore, proper gerund sentence IMO needs to be, "Raising rates is a measure taken by the Federal Reserve to bla bla bla..."

hope it makes sense. correct me, if i am wrong.

thank you,
SVP
Joined: 16 Jul 2009
Posts: 1536
Schools: CBS
WE 1: 4 years (Consulting)
Followers: 44

Kudos [?]: 1193 [0], given: 2

Re: SC GMATPrep 1 Federal Reserve [#permalink]

### Show Tags

31 Jul 2010, 14:43
sunny86 wrote:
noboru wrote:
TommyWallach wrote:
Hey All,

A gerund is an -ing word that is a NOUN formed from a verb. "The running of the bulls", for example. A participle is an -ing or -ed word that is an ADJECTIVE formed from a verb. If I say "rising interest rates", "rising" is clearly an adjective/participle modifying "interest rates". If I said, "The sun's rising came as a shock", now "rising" has become a noun/gerund. Is that clear?

-tommy

Is not so clear.
"Rising rates is a measure taken by the Federal Reserve to bla bla bla..."
In this case Rising is a gerund, and therefore Singular.

In this SC question, i dont see that "rising" is an adjective modifying rates...

Dear noboru,

I have something to add over here.

"Rising rates is a measure taken by the Federal Reserve to bla bla bla..." - here in order to interpret 'rising' as gerund, it has to be the verb 'raise' i.e. gerund formed by the verb 'raise' - 'raising' because, 'raise' is a transitive verb, needs an object (rates)
therefore, proper gerund sentence IMO needs to be, "Raising rates is a measure taken by the Federal Reserve to bla bla bla..."

hope it makes sense. correct me, if i am wrong.

thank you,

How stupid!
Many thanks. That clarify my confusion.
_________________

The sky is the limit
800 is the limit

GMAT Club Premium Membership - big benefits and savings

Manager
Status: Trying to get into the illustrious 700 club!
Joined: 18 Oct 2010
Posts: 78
Followers: 1

Kudos [?]: 23 [0], given: 58

Re: SC GMATPrep 1 Federal Reserve [#permalink]

### Show Tags

18 Mar 2011, 08:16
x2suresh wrote:
eileen1017 wrote:
Noting that the Federal Reserve had raised a key short-term interest rate against last month, analysts said that they expected orders for durable goods to decline soon because rising interest rates makes it more expensive to buy them on credit.

A. rising interest rates makes it more expensive to buy them on credit
B. rising interest rates make buying on credit more expensive
C. a rise in interest rates make it more expensive to buy on credit
D. a rise in interest rates make buying on credit more expensive
E. a rise in interest rates makes it more expensive for them to be bought on credit

Please explain your answers. Thanks.

It --> has no clear reference
A,C,E --> OUT

D- a rise -- make (wrong sub-verb agreement)

B is the best.. (rising-adj) rates -- make (No problem with S-V agreement and also No agmbiguity)

Good catch on D. I had B or D and chose D instead Thanks for the explanation.

D. a rise [in interest rates] make buying on credit more expensive (we should remove the bracketed preposition to make it easier to find the Subject Verb agreement)

a rise make buying on credit more expensive .. this is clearly wrong
_________________

I'm trying to not just answer the problem but to explain how I came up with my answer. If I am incorrect or you have a better method please PM me your thoughts. Thanks!

Manager
Status: Bouncing back from failure
Joined: 08 Mar 2010
Posts: 108
Schools: Wharton,MIT, Tepper, Kelly,
WE 1: 7 years- Service Managament, poject Management, Business Consultant- Retail
Followers: 1

Kudos [?]: 15 [0], given: 36

Re: SC GMATPrep 1 Federal Reserve [#permalink]

### Show Tags

06 Apr 2011, 01:49
Noting that the Federal Reserve had raised a key short-term interest rate against last month, analysts said that they expected orders for durable goods to decline soon because rising interest rates makes it more expensive to buy them on credit.

(A) rising interest rates makes it more expensive to buy them on credit
(B) rising interest rates make buying on credit more expensive -correct
(C) a rise in interest rates make it more expensive to buy on credit -
(D) a rise in interest rates make buying on credit more expensive
(E) a rise in interest rates makes it more expensive for them to be bought on credit

'It' has not clear reference - eliminate A,C,E ... a rise - singular subject - should be followed by 'makes' . D is eliminated
Manager
Joined: 14 Feb 2012
Posts: 215
Followers: 2

Kudos [?]: 248 [0], given: 7

Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

### Show Tags

21 Mar 2012, 12:21
B it is....
Simple elimination....
_________________

The Best Way to Keep me ON is to give Me KUDOS !!!
If you Like My posts please Consider giving Kudos

Shikhar

Manager
Joined: 01 Nov 2010
Posts: 179
Location: Zürich, Switzerland
Followers: 2

Kudos [?]: 45 [0], given: 20

Re: SC GMATPrep 1 Federal Reserve [#permalink]

### Show Tags

21 Mar 2012, 15:15
TommyWallach wrote:
Hey All,

Plenty of confusion here, so I thought it might be worth my weighing in:

Noting that the Federal Reserve had raised a key short-term interest rate against last month, analysts said that they expected orders for durable goods to decline soon because rising interest rates makes it more expensive to buy them on credit.

(A) rising interest rates makes it more expensive to buy them on credit
(B) rising interest rates make buying on credit more expensive
(C) a rise in interest rates make it more expensive to buy on credit
(D) a rise in interest rates make buying on credit more expensive
(E) a rise in interest rates makes it more expensive for them to be bought on credit

Okay looking here, we have a couple categories that should jump out. First is simple subject-verb agreement. We notice because the verb "make" goes singular and plural. A is out because "rising interest rates" are plural, so the verb shouldn't have an -s on the end. C and D are also out, because "a rise" is singular, so the verb should be "makes".

We're left with B and E. This is one of the VERY RARE times when it comes down to a concision/voice issue. What I mean is that B and E say the same thing, but E does it using the horribly wordy passive voice (to be bought). Notice that both B and E have a bad pronoun (them is highly ambiguous, because it could refer to durable goods, orders, interest rates...almost anything), but because they BOTH have it, we don't need to worry about this issue.

The correct answer is B. Hope that helps!

-t

Is there use of "them" in option B?
Senior Manager
Joined: 13 Mar 2012
Posts: 360
Concentration: Operations, Strategy
Followers: 2

Kudos [?]: 175 [0], given: 31

Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

### Show Tags

22 Mar 2012, 22:48
...............b IMO....!!!
_________________

Practice Practice and practice...!!

If my reply /analysis is helpful-->please press KUDOS
If there's a loophole in my analysis--> suggest measures to make it airtight.

Manager
Joined: 07 Dec 2011
Posts: 161
Location: India
Followers: 1

Kudos [?]: 41 [0], given: 31

Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

### Show Tags

23 Mar 2012, 05:32
B makes sense. Thanks for the explanation.
Manager
Joined: 28 Apr 2011
Posts: 184
Followers: 0

Kudos [?]: 8 [0], given: 6

Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

### Show Tags

26 Mar 2012, 02:11
Rising ... rates------ subjet is rates (Plural)
a rise in...rates----- subjet is rise (singular)
hence B it is
Manager
Joined: 28 Apr 2011
Posts: 184
Followers: 0

Kudos [?]: 8 [0], given: 6

Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

### Show Tags

26 Mar 2012, 02:18
Rising ... rates------ subjet is rates (Plural)
a rise in...rates----- subjet is rise (singular)
hence B it is
Senior Manager
Joined: 28 Dec 2010
Posts: 331
Location: India
Followers: 1

Kudos [?]: 228 [0], given: 33

Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

### Show Tags

22 May 2012, 11:08
IMO B. interest rates are plural so need make and not makes. between B&E B is more concise.
Manager
Joined: 22 Apr 2011
Posts: 213
Schools: Mccombs business school, Mays business school, Rotman Business School,
Followers: 1

Kudos [?]: 115 [0], given: 18

Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

### Show Tags

08 Jun 2012, 21:14
nevergiveup wrote:
Noting that the Federal Reserve had raised a key short-term interest rate against last month, analysts said that they expected orders for durable goods to decline soon because rising interest rates makes it more expensive to buy them on credit.

(A) rising interest rates makes it more expensive to buy them on credit
(B) rising interest rates make buying on credit more expensive
(C) a rise in interest rates make it more expensive to buy on credit
(D) a rise in interest rates make buying on credit more expensive
(E) a rise in interest rates makes it more expensive for them to be bought on credit

Please explain your answers. Thanks.

i pick B here. the subject is "rates" here. "it" does not have legit referent. E is just wordy. so B wins
_________________

some people are successful, because they have been fortunate enough and some people earn success, because they have been determined.....

please press kudos if you like my post.... i am begging for kudos...lol

Verbal Forum Moderator
Joined: 16 Jun 2012
Posts: 1132
Location: United States
Followers: 278

Kudos [?]: 3104 [0], given: 123

Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

### Show Tags

24 Mar 2013, 23:24
nevergiveup wrote:
Noting that the Federal Reserve had raised a key short-term interest rate against last month, analysts said that they expected orders for durable goods to decline soon because rising interest rates makes it more expensive to buy them on credit.

(A) rising interest rates makes it more expensive to buy them on credit
(B) rising interest rates make buying on credit more expensive
(C) a rise in interest rates make it more expensive to buy on credit
(D) a rise in interest rates make buying on credit more expensive
(E) a rise in interest rates makes it more expensive for them to be bought on credit

Please explain your answers. Thanks.

Sure it's B.
A, C, E are wrong because "it" is not clear.
D is wrong because "a rise" is singular, it should go with "makes", not "make".
B is clear and concise. --> Correct.
_________________

Please +1 KUDO if my post helps. Thank you.

"Designing cars consumes you; it has a hold on your spirit which is incredibly powerful. It's not something you can do part time, you have do it with all your heart and soul or you're going to get it wrong."

Chris Bangle - Former BMW Chief of Design.

Manager
Joined: 15 Aug 2012
Posts: 110
Location: India
Concentration: Technology, Strategy
Schools: Merage '15 (A)
GPA: 3.6
WE: Consulting (Computer Software)
Followers: 6

Kudos [?]: 47 [0], given: 22

Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

### Show Tags

18 Apr 2013, 01:47
Noting that the Federal Reserve had raised a key short-term interest rate against last month, analysts said that they expected orders for durable goods to decline soon because rising interest rates makes it more expensive to buy them on credit.

(A) rising interest rates makes it more expensive to buy them on credit it and them are ambiguous
(B) rising interest rates make buying on credit more expensive looks fine
(C) a rise in interest rates make it more expensive to buy on credit it is ambiguous
(D) a rise in interest rates make buying on credit more expensive rise and make SV agreement issue
(E) a rise in interest rates makes it more expensive for them to be bought on credit it and them are ambiguous

Hence B
GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10365
Followers: 996

Kudos [?]: 223 [0], given: 0

Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

### Show Tags

17 Jun 2014, 09:07
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: Noting that the Federal Reserve had raised a key short-term   [#permalink] 17 Jun 2014, 09:07

Go to page   Previous    1   2   3    Next  [ 45 posts ]

Similar topics Replies Last post
Similar
Topics:
8 Noting that the Federal Reserve had raised a key short-term 17 11 Sep 2015, 10:31
4 Since February, the Federal Reserve has raised its 4 22 Apr 2017, 00:53
8 Noting that the Federal Reserve had raised a key short-term 6 12 Sep 2016, 15:16
62 Since February, the Federal Reserve has raised its 23 04 Dec 2016, 08:57
Since February, the Federal Reserve has raised its 0 05 Aug 2015, 06:04
Display posts from previous: Sort by

# Noting that the Federal Reserve had raised a key short-term

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

 Powered by phpBB © phpBB Group and phpBB SEO 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®.