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# Since savings banks have to use short-term deposits to

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Director
Joined: 11 Jun 2007
Posts: 633

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Since savings banks have to use short-term deposits to [#permalink]

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04 Oct 2007, 07:19
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19. Since savings banks have to use short-term deposits to finance long-term fixed-rate mortgage loans, they sometimes lose money when there is a rise in short-term rates and, on the other hand, they are unable to raise the rates on their mortgages.
(A) when there is a rise in short-term rates and, on the other hand, they are unable to raise
(B) when short-term rates rise and they are unable to raise
(C) when a rise in short-term rates occurs and, correspondingly, there is no rise possible in
(D) with a rise in short-term rates, and they are unable to raise
(E) with short-term rates on the rise and no rise possible in

(B)

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Intern
Joined: 12 Jul 2007
Posts: 47

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04 Oct 2007, 07:35
B

B seems grammatically correct and concise too me. A & C seems awkward and redundant and 'with' at the beginning of D & E does not sound logical.

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Manager
Joined: 07 Aug 2005
Posts: 124

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04 Oct 2007, 19:25
eyunni wrote:
19. Since savings banks have to use short-term deposits to finance long-term fixed-rate mortgage loans, they sometimes lose money when there is a rise in short-term rates and, on the other hand, they are unable to raise the rates on their mortgages.
(A) when there is a rise in short-term rates and, on the other hand, they are unable to raise
(B) when short-term rates rise and they are unable to raise
(C) when a rise in short-term rates occurs and, correspondingly, there is no rise possible in
(D) with a rise in short-term rates, and they are unable to raise
(E) with short-term rates on the rise and no rise possible in

(B)

Difficult choices. Two reasons for loosing money should be ||

In A ...,they loose money....and they are unable to raise

None sounds correct to me. I will pick E.

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CEO
Joined: 29 Mar 2007
Posts: 2553

Kudos [?]: 528 [0], given: 0

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04 Oct 2007, 19:43
eyunni wrote:
19. Since savings banks have to use short-term deposits to finance long-term fixed-rate mortgage loans, they sometimes lose money when there is a rise in short-term rates and, on the other hand, they are unable to raise the rates on their mortgages.
(A) when there is a rise in short-term rates and, on the other hand, they are unable to raise
(B) when short-term rates rise and they are unable to raise
(C) when a rise in short-term rates occurs and, correspondingly, there is no rise possible in
(D) with a rise in short-term rates, and they are unable to raise
(E) with short-term rates on the rise and no rise possible in

(B)

I say B.

we need when here. So elim DE.

C: is a mess.
A: wordy: "and, on the other hand", <--not needed.

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Manager
Joined: 09 Jul 2007
Posts: 180

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04 Oct 2007, 23:50
i'll go for A..
A shows a contrast between two ideas but B simply gives us those two ideas..

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Director
Joined: 11 Jun 2007
Posts: 633

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05 Oct 2007, 06:07
OA is (B)

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05 Oct 2007, 06:07
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# Since savings banks have to use short-term deposits to

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