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penco
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Since savings banks have to use short-term deposits to finance long-te 18 Jan 2021, 03:52
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ajit257
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
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If in C, 'There' was omitted,
Sentence would be :
when a rise in short-term rates occurs and, correspondingly, no rise is possible in

Would it be preferable to choose B or C then ?
Just trying to understand the logic behind it. I thought they(in B ) was referring to 'short-term rates' :dazed
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Since savings banks have to use short-term deposits to finance long-te 18 Jan 2021, 04:04
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penco
If in C, 'There' was omitted,
Sentence would be :
when a rise in short-term rates occurs and, correspondingly, no rise is possible in

Would it be preferable to choose B or C then ?
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Hi penco, the main issue with C is that the agent of action (the doer of raise) is not explicitly mentioned. This continues to be the case in your modified option as well.

Quote:
Just trying to understand the logic behind it. I thought they(in B ) was referring to 'short-term rates' :dazed
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Agree that there is some ambiguity associated with they. However, please note that pronoun ambiguity should generally not be a reason to eliminate an option.
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Since savings banks have to use short-term deposits to finance long-te 18 Jan 2021, 05:28
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penco
If in C, 'There' was omitted,
Sentence would be :
when a rise in short-term rates occurs and, correspondingly, no rise is possible in

Would it be preferable to choose B or C then ?
Hi penco, the main issue with C is that the agent of action (the doer of raise) is not explicitly mentioned. This continues to be the case in your modified option as well.

Quote:
Just trying to understand the logic behind it. I thought they(in B ) was referring to 'short-term rates' :dazed
Agree that there is some ambiguity associated with they. However, please note that pronoun ambiguity should generally not be a reason to eliminate an option.
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Thanks Ashish,

Will keep that in check going forward.
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Since savings banks have to use short-term deposits to finance long-te 03 Oct 2022, 10:08
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In B, " and they are unable to raise " don't we require " ,and " (use of comma before and) to separate two independent clause?
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Since savings banks have to use short-term deposits to finance long-te 28 Jun 2023, 07:19
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shubhamg266
You guys are ridiculous. Everyone just checks the answer and tries to justify it in any manner sounding as logical as he can. How conveniently everyone explained why the answer should be B. Can't you see the clear ambiguity in that sentence?

It says:
Quote:
(B) when short-term rates rise and they are unable to raise

In this sentence, B clearly refers to short-term rates, not to banks still you have marked this as the right answer. Pathetic response from the community on this one. Disappointing.
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Calm down man. Please go through parallel markers concept.
X + and/but + Y
where x is a noun and Y is a pronoun. So as far as it matches the cardinality and doesn't sound illogical, Y will refer to X only
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Since savings banks have to use short-term deposits to finance long-te 23 Sep 2023, 12:24
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GMATNinja - Can you please explain the meaning of the sentence and also how ans choice B is ok without having ,+ and between two IC.
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Since savings banks have to use short-term deposits to finance long-te 30 Sep 2023, 06:24
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nikitathegreat
GMATNinja - Can you please explain the meaning of the sentence and also how ans choice B is ok without having ,+ and between two IC.
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Choice (B) actually only has one independent clause: "[Savings banks] sometimes lose money."

After the "when", we have two parallel subject+verb pairs: 1) "short-term rates rise" and 2) "they are unable to raise the rates...". But these aren't independent clauses, because they include "when." The phrases "when short-term rates rise" and "when they are unable to raise the rates on their mortgages" can't stand alone as sentences, and they're not independent clauses.

So, the "and" in choice (B) is used to connect two parallel subject+verb pairs, but since the pairs aren't actually independent clauses, there's no need for a comma.

I hope that helps!
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