Official ExplanationEstimates of a bountiful harvest have kept prices for corn futures low, but recent bad weather and pestilence have stunted corn growth,
indicating to traders in the futures exchange that the price of corn will rise in the coming months.A. indicating to traders in the futures exchange that the price of corn will rise in the coming monthsB. indicating to traders in the futures exchange the price of corn in the coming months is risingC. which indicates that to traders in the coming months the price of corn would be raised by the futures exchangeD. with the indication to traders in the coming months that the price of corn would be raised by the futures exchangeE. with the indication to traders of corn prices being raised in the coming months by the futures exchangeAfter a quick glance over the options, we can see a few key differences that we can focus on:
1. indicating to traders / which indicates to traders / with the indication to traders (Modifiers & Meaning)
2. will rise / is rising / would be raised / being raised (Verb Tense)
3. in the futures exchange / by the futures exchange (Logical Meaning)Since #3 on our list is an either/or split, let’s start there. No matter which way we go, we’ll eliminate 2-3 options rather quickly. This has to do with logical meaning. We need to ask ourselves this question: do traders in the futures exchange raise/lower the price of corn? No. The price of corn goes up or down based on harvest levels (as indicated in the non-underlined portion). Therefore, these two phrases mean different things:
Traders in the futures exchange = tells us what organization the traders belong to (futures exchange)
By the futures exchange = tells us that members of the futures exchange are changing prices
Let’s eliminate any options that suggest the futures exchange changes prices, rather than harvesting levels:
A. indicating to
traders in the futures exchange that the price of corn will rise in the coming months
B. indicating to
traders in the futures exchange the price of corn in the coming months is rising
C. which indicates that to traders in the coming months
the price of corn would be raised by the futures exchangeD. with the indication to traders in the coming months that
the price of corn would be raised by the futures exchangeE. with the indication to traders of
corn prices being raised in the coming months by the futures exchangeWe can eliminate options C, D, & E because they change the intended meaning of what the futures exchange does. Now that we have it narrowed down to only 2 options, let’s tackle #1 and #2 on our list:
A. indicating to traders in the futures exchange that the price of corn will rise in the coming monthsThis is
CORRECT! The intended meaning is intact and clear, and the future tense “will rise” makes sense to show that the prices haven’t risen yet, but they will.
B. indicating to traders in the futures exchange the price of corn in the coming months is risingThis is
INCORRECT because we need to use a future tense verb to discuss future events, and this is using a present tense verb. The prices are not currently rising – they will LATER.
There you have it – option A was our winner all along! By starting with an either/or split, we were able to eliminate illogical sentences before tackling other issues.
Don’t study for the GMAT. Train for it.
_________________
EMPOWERgmat
Total GMAT Content & Tactical Training | 120 Point Guarantee | All 6 Official GMAT Tests
empowergmat.com