GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 15 Oct 2018, 14:26

Close

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

QOTD #2 Given the increasing popularity of online brokerage firms, the

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

Hide Tags

Board of Directors
User avatar
P
Joined: 01 Sep 2010
Posts: 3305
QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post Updated on: 23 Oct 2017, 21:05
2
4
Question 1
00:00
A
B
C
D
E

based on 305 sessions

88% (03:01) correct 12% (03:25) wrong

HideShow timer Statistics

Question 2
00:00
A
B
C
D
E

based on 291 sessions

80% (00:39) correct 20% (00:49) wrong

HideShow timer Statistics

Question 3
00:00
A
B
C
D
E

based on 303 sessions

71% (01:03) correct 29% (01:22) wrong

HideShow timer Statistics

Question 4
00:00
A
B
C
D
E

based on 295 sessions

72% (01:19) correct 28% (01:37) wrong

HideShow timer Statistics

Given the increasing popularity of online brokerage firms, the fact that these firms have started to offer their clients other financial services is hardly surprising. In some cases, customers can simply link their online stock portfolios with traditional accounts held by other financial institutions. More and more online brokers, however, offer their own interest-bearing checking accounts, money market accounts, and retirement accounts, and even provide mortgages and home equity loans.

Some investors are understandably attracted to the idea of a one-stop shop for all their financial needs, and indeed there are conveniences to having one’s various asset accounts linked together. But consumer advocates point out that this convenience extends to criminals intent on gaining access to funds and financial data. As Francis Golsen of the Investor Protection Bureau points out, “Combining your assets at one financial institution is a bit like using your parked car to store your jewelry. If you become a victim of theft, there’s that much more to thieve.”

Another danger is that investors may be less selective when deciding which financial institution to use for various services, given that the easiest choice is to use one company for every service. The temptation not to shop around may lead to a hasty decision. This fact is not lost on brokerage firms, whose marketing departments are quick to take advantage of the cross-selling potential inherent in offering so many products. As a result, those who use one-stop banking should expect an increase in promotional material clogging their email inboxes.

To be fair, we are now seeing some very attractive products as more brokers get into the act of providing additional services. Some firms are offering checking accounts with interest rates so high that these accounts are most likely “loss leaders” designed to get investors interested in other financial products offered by the firm. But this can only last so long. No investor should assume that their beloved brokerage house, which now advertises free trading and checking accounts with interest rates of 3.9% (and no minimum balance required!) will continue to provide these offers a month after they were first made.
Which of the following is NOT mentioned in the passage as a possible negative result of “one-stop” banking?

(A) The potential for criminal wrongdoing is heightened.
(B) Investors may not sufficiently explore their options.
(C) Investors may receive unwanted marketing offers.
(D) Brokerage firms may lack sufficient expertise in managing other
financial services such as mortgages and home equity loans.
(E) Investors may wrongly assume that certain introductory offers are still in place.

Spoiler: :: OA
D


The primary purpose of the passage is to _______.
(A) alert readers to certain risks associated with using “one-stop” shopping for financial needs
(B) give examples of the ways in which online brokers have diversified their services
(C) raise questions about the legitimacy of cross-selling financial services
(D) advise investors not to link traditional bank accounts with online accounts
(E) provide an overview of recent changes in online brokering

Spoiler: :: OA
A


It can be inferred from the passage that the increase in the number of online brokers who offer banking services _______.
(A) was a result of consumer dissatisfaction with the level of service offered by traditional banks
(B) could come to an abrupt end without much warning
(C) has led to some financial products that appear to be very desirable to investors
(D) has contributed to an increase in the number of crimes involving the theft of financial data
(E) is, despite some risks, generally beneficial to investors who want to diversify their stock portfolios

Spoiler: :: OA
C


The purpose of the second paragraph is to make which of the following points?
(A) Linking many of one’s financial assets is risky and no more convenient than keeping one’s banking and online portfolios separate.
(B) One-stop banking puts investors at risk for more than just theft of assets and financial data.
(C) Using one firm for many financial services puts one at a greater risk of theft than using several institutions does.
(D) Investors who use their online broker for diverse banking services risk making hasty financial decisions.
(E) Traditional banking services such as mortgages are best provided by traditional banks.

Spoiler: :: OA
C


_________________

COLLECTION OF QUESTIONS AND RESOURCES
Quant: 1. ALL GMATPrep questions Quant/Verbal 2. Bunuel Signature Collection - The Next Generation 3. Bunuel Signature Collection ALL-IN-ONE WITH SOLUTIONS 4. Veritas Prep Blog PDF Version 5. MGMAT Study Hall Thursdays with Ron Quant Videos
Verbal:1. Verbal question bank and directories by Carcass 2. MGMAT Study Hall Thursdays with Ron Verbal Videos 3. Critical Reasoning_Oldy but goldy question banks 4. Sentence Correction_Oldy but goldy question banks 5. Reading-comprehension_Oldy but goldy question banks


Originally posted by carcass on 09 Jun 2016, 00:58.
Last edited by Skywalker18 on 23 Oct 2017, 21:05, edited 1 time in total.
Timer added
Most Helpful Community Reply
Intern
Intern
avatar
B
Joined: 12 Mar 2017
Posts: 15
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 06 Oct 2017, 20:47
9
I only got 2 out 4 correct. More work must be done for this toughest section.
I need your encouragement.
Please hit Kudos, it's a big encouragement for me.
General Discussion
Current Student
avatar
Joined: 18 Sep 2014
Posts: 228
Reviews Badge
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 09 Jun 2016, 04:09
Though RC is my biggest challenge...I gave it a try!!!
D
A
C
B( Though the passage is not very well segregated as paragraphs)
_________________

Kindly press the Kudos to appreciate my post !! :-)

Manager
Manager
avatar
Joined: 19 Jan 2016
Posts: 72
Location: India
Concentration: Strategy
Premium Member
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 09 Jun 2016, 05:41
FightToSurvive wrote:
Though RC is my biggest challenge...I gave it a try!!!
D
A
C
B( Though the passage is not very well segregated as paragraphs)


1 - E.
(D) is not correct.
Brokerage firms may lack sufficient expertise in managing other financial services such as mortgages and home equity loans.
More and more online brokers, however, offer their own interest-bearing checking accounts, money market accounts, and retirement accounts, and even provide mortgages and home equity loans.

2 - A

3 - B (this is tough for me)
Talks about banking.
No investor should assume that their beloved brokerage house, which now advertises free trading and checking accounts with interest rates of 3.9% (and no minimum balance required!) will continue to provide these offers a month after they were first made.

4 - B
Senior Manager
Senior Manager
avatar
Joined: 05 Nov 2012
Posts: 467
Concentration: Technology, Other
GMAT ToolKit User Premium Member Reviews Badge
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 10 Jun 2016, 00:50
1
Top Contributor
~8:25 mins. Easy passage.All correct.
~4 mins for para and ~1 for each question.
Manager
Manager
User avatar
B
Joined: 29 Jan 2015
Posts: 82
Location: India
Concentration: Marketing, Entrepreneurship
GPA: 3.7
WE: Information Technology (Internet and New Media)
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 04 Oct 2017, 02:19
Can anybody please explain the answer for question 3 ?
Intern
Intern
avatar
B
Joined: 28 Apr 2017
Posts: 40
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 07 Oct 2017, 10:08
1
soumya170293 wrote:
Can anybody please explain the answer for question 3 ?


Hi soumya170293

Q3 is asking to infer and the answer can be found in the first line. "Given the increasing popularity of online brokerage firms, the fact that these firms have started to offer their clients other financial services is hardly surprising."

Hope its clear. Press kudos if you like
Intern
Intern
avatar
B
Joined: 09 Oct 2016
Posts: 18
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 08 Oct 2017, 00:53
IMO :

Last question : "(C) Using one firm for many financial services puts one at a greater risk of theft than using several institutions does " can not be correct since, according to the paragraph, using one firm for all services does not increase the risk of theft instead it makes one more vulnerable in case of theft.
Best answer (B).
Verbal Forum Moderator
User avatar
V
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 2091
Location: India
Concentration: General Management, Strategy
Schools: Kelley '20, ISB '19
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 23 Oct 2017, 21:12
Took 8 mins 30 seconds in total, including almost 4 mins to read . All correct ; easy passage .

Which of the following is NOT mentioned in the passage as a possible negative result of “one-stop” banking?
(D) Brokerage firms may lack sufficient expertise in managing other financial services such as mortgages and home equity loans. - Correct


The primary purpose of the passage is to _______.
(A) alert readers to certain risks associated with using “one-stop” shopping for financial needs - the passage lists of the negatives of one-stop shopping for financial needs


It can be inferred from the passage that the increase in the number of online brokers who offer banking services _______.
(C) has led to some financial products that appear to be very desirable to investors - To be fair, we are now seeing some very attractive products as more brokers get into the act of providing additional services.


The purpose of the second paragraph is to make which of the following points?
(C) Using one firm for many financial services puts one at a greater risk of theft than using several institutions does. -As Francis Golsen of the Investor Protection Bureau points out, “Combining your assets at one financial institution is a bit like using your parked car to store your jewelry. If you become a victim of theft, there’s that much more to thieve.”
_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

BSchool Forum Moderator
User avatar
D
Joined: 28 Mar 2017
Posts: 1160
Location: India
GMAT 1: 730 Q49 V41
GPA: 4
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 30 Nov 2017, 08:33
Senior Manager
Senior Manager
avatar
G
Joined: 15 Oct 2017
Posts: 308
Reviews Badge CAT Tests
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 31 Jul 2018, 04:14
Why not B for question number 3? Isn't C a very obvious answer choice for an Inference question?
Intern
Intern
avatar
B
Joined: 07 Jul 2018
Posts: 11
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 02 Aug 2018, 00:11
(D) Brokerage firms may lack sufficient expertise in managing other
financial services such as mortgages and home equity loans.
(E) Investors may wrongly assume that certain introductory offers are still in place.

Is answer to first D or E?
As far as i see, D is mentioned in the passage but E has nor relevance and is not mentioned anywhere?
So how is the answer D instead of E?
Intern
Intern
avatar
B
Joined: 10 May 2018
Posts: 2
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 02 Aug 2018, 09:02
Can anyone explain Q4?
My answer is B.
Intern
Intern
avatar
B
Joined: 22 Sep 2017
Posts: 18
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 13 Aug 2018, 09:07
All correct
easy passage
8 min
POE helped a lot :thumbup:
Manager
Manager
User avatar
G
Joined: 20 Apr 2018
Posts: 179
Concentration: Technology, Nonprofit
WE: Analyst (Non-Profit and Government)
Premium Member CAT Tests
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the  [#permalink]

Show Tags

New post 13 Aug 2018, 20:10
1
urvashis09 wrote:
Why not B for question number 3? Isn't C a very obvious answer choice for an Inference question?


It can be inferred from the passage that the increase in the number of online brokers who offer banking services _______.
(A) was a result of consumer dissatisfaction with the level of service offered by traditional banks
(B) could come to an abrupt end without much warning
(C) has led to some financial products that appear to be very desirable to investors
(D) has contributed to an increase in the number of crimes involving the theft of financial data
(E) is, despite some risks, generally beneficial to investors who want to diversify their stock portfolios

urvashis09, choice B: the passage points out some cons to one-stop system but never suggests this could lead to an end of this system in any way. This has not been talked about in the passage at all.

Quote:
Can anyone explain Q4?
My answer is B.


sumitsrj99, I think you're getting fixated over the analogy presented in paragraph 2 to explain the point that there is a lot to steal at one place.

Relevant text in blue (don't fixate on red part):
But consumer advocates point out that this convenience extends to criminals intent on gaining access to funds and financial data. As Francis Golsen of the Investor Protection Bureau points out, “Combining your assets at one financial institution is a bit like using your parked car to store your jewelry. If you become a victim of theft, there’s that much more to thieve.”

The purpose of the second paragraph is to make which of the following points?
(A) Linking many of one’s financial assets is risky and no more convenient than keeping one’s banking and online portfolios separate.
(B) One-stop banking puts investors at risk for more than just theft of assets and financial data.
(C) Using one firm for many financial services puts one at a greater risk of theft than using several institutions does.
(D) Investors who use their online broker for diverse banking services risk making hasty financial decisions.
(E) Traditional banking services such as mortgages are best provided by traditional banks.
GMAT Club Bot
Re: QOTD #2 Given the increasing popularity of online brokerage firms, the &nbs [#permalink] 13 Aug 2018, 20:10
Display posts from previous: Sort by

QOTD #2 Given the increasing popularity of online brokerage firms, the

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


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

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®.