shridhar786 wrote:
On the recommendation of top financial advisors, corporate officials diverted one million dollars into the bond market just before the government lowered interest rates, which was a very fiscally responsible decision.
(A) On the recommendation of top financial advisors, corporate officials diverted one million dollars into the bond market just before the government lowered interest rates, which was a very fiscally responsible decision.
(B) Corporate officials, on the recommendation of top financial advisors, diverted one million dollars into the bond market just before the government lowered interest rates, which was a very fiscally responsible decision.
(C) On the recommendation of top financial advisors, corporate officials diverted one million dollars into the bond market just before the government lowered interest rates, which was a very fiscally irresponsible decision.
(D) Just before the government lowered interest rates, top financial advisors told corporate officials to divert one million dollars into the bond market and that turned out to be a very fiscally responsible decision.
(E) Just after the government lowered interest rates, top financial advisors told corporate officials to divert one million dollars into the bond market and that turned out to be a very fiscally responsible decision. [meaning problem: see below]
I do not understand what is happening with this sentence.
Unless you know that interest rates and the price of bonds are inversely related, you have no way to choose between D and E.
Veritas usually writes better questions than this one.
shridhar786 , are you sure that this is a Veritas question? How old is it? Are you sure that it is authentic?
(It's okay if not. I just need to know because this question is not good.)
If you do not know about the relationship between interest rates and the price of bonds, then the only way to choose D is to believe the urban myth that option A determines original and intended meaning.
Option A does not determine original meaning.
The correct answer to a question should not turn on
that non-rule about option A.
• Split #1: which must modify a noun and cannot "stand for" an entire clauseEliminate A, B, and C because all three incorrectly use
which to refer to the idea expressed in the
entire previous clause.
The word
which can modify only a stated and fairly nearby
noun.We can add a noun (called a summative modifier) and change
which to
that to fix the error, this way:
Option A, rewritten:
On the recommendation of advisors, corporate officials diverted $1 million into the bond market just before the government lowered interest rates, a decision that was very fiscally responsible.-- "a decision" now correctly summarizes the preceding clause and is followed by a that-clause
Eliminate A, B, and C
• Split #2 - have a degree or experience in business, finance, or economics.I'm only sort of kidding.
According to the rules of economics, Option D is logical. Option E is not.
The federal interest rate and the price of bonds are inversely related.
When interest rates decrease, the price of bonds increases.
When interest rates increase, the price of bonds decreases.
Option DIf you bought the bonds before the interest rates were lowered, as in option (D), you bought the bonds at a relatively low price and could sell them at a higher price.
In option D,
that [choice to buy bonds while they were cheap, that diversion of funds] turned out to be a very fiscally responsible decision.
Logical.
In both (D) and (E), I don't like
that as a standalone pronoun.
→ → This construction would be better: . . . top financial advisors told corporate officials to divert one million dollars into the bond market and that
decision turned out to be very fiscally responsible.
Option EIf you bought the bonds
after the interest rates were lowered, as in option (E), you bought the bonds for a relatively high price and diverted $1 million in assets to do so, money whose ROI would probably be better if the money were invested elsewhere.
Option E claims that the decision to buy at a high price was "very fiscally responsible."
Wrong.
Eliminate E
The best answer is DMaybe I am missing something, but I think that this question is deeply flawed.
I would not worry about this question.