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# Over the last five , Bank X has experienced the number of its.........

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Joined: 03 Mar 2018
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Re: Over the last five , Bank X has experienced the number of its.........  [#permalink]

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16 Mar 2018, 11:26
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Over the last five , Bank X has experienced the number of its retail customer accounts dropped by over 50%.Over this same period,share price of The Bank has increased by more than 80%.The phenomenon has confused certain investor, who believe that a bank's share price should drop if its number of customer accounts drops.
Which of the following, if true over the last five years,best accounts for the observed movement in the price of share of banks X?

A) two years ago Bank X was investigated by the Securities and Exchange Commission for accounting irregularities,but last year the company was cleared off all charges .
B) Bank X recently implemented a highly publicized program for no-fee home mortgages.
C) Bank X is in the process of switching its customer base from retail customer to commercial customers, which now account for over 75% of the bank's revenues.
D) there have been many aggressive new entrants into the retail customer banking business over the last five years.

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Re: Over the last five , Bank X has experienced the number of its.........  [#permalink]

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16 Mar 2018, 12:55
painhunter wrote:
Over the last five , Bank X has experienced the number of its retail customer accounts dropped by over 50%.Over this same period,share price of The Bank has increased by more than 80%.The phenomenon has confused certain investor, who believe that a bank's share price should drop if its number of customer accounts drops.
Which of the following, if true over the last five years,best accounts for the observed movement in the price of share of banks X?

A) two years ago Bank X was investigated by the Securities and Exchange Commission for accounting irregularities,but last year the company was cleared off all charges .
B) Bank X recently implemented a highly publicized program for no-fee home mortgages.
C) Bank X is in the process of switching its customer base from retail customer to commercial customers, which now account for over 75% of the bank's revenues.
D) there have been many aggressive new entrants into the retail customer banking business over the last five years.

painhunter, is this question from the GMATPrep software? This post only has four answer choices. Please make sure that you type the question EXACTLY as it appears in the software.
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Joined: 04 Nov 2017
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Re: Over the last five , Bank X has experienced the number of its.........  [#permalink]

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17 Mar 2018, 22:27
Over the last five , Bank X has experienced the number of its retail customer accounts dropped by over 50%.Over this same period,share price of The Bank has increased by more than 80%.The phenomenon has confused certain investor, who believe that a bank's share price should drop if its number of customer accounts drops.
Which of the following, if true over the last five years,best accounts for the observed movement in the price of share of banks X?

A) two years ago Bank X was investigated by the Securities and Exchange Commission for accounting irregularities,but last year the company was cleared off all charges- this options accounts only for last 2 years.
B) Bank X recently implemented a highly publicized program for no-fee home mortgages.- recent is the clue. what about last 5 years?
C) Bank X is in the process of switching its customer base from retail customer to commercial customers, which now account for over 75% of the bank's revenues- Correct. this explains why there is decrease in retail customer base, and also that the increase in share price could be because of increase in revenues from commercial customers.
D) there have been many aggressive new entrants into the retail customer banking business over the last five years.- this should actually decrease share price.
there is no option E to evaluate.

out of these 4, IMO C.
Correct me please if my logic is wrong.

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THERE IS LIKELY A BETTER DISCUSSION OF THIS EXACT QUESTION.
This discussion does not meet community quality standards. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.

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Re: Over the last five , Bank X has experienced the number of its.........   [#permalink] 17 Mar 2018, 22:27
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