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# The bank holds \$3 billion in loans that are seriously delinquent or in

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The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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Updated on: 30 Sep 2018, 21:06
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Question Stats:

71% (01:11) correct 29% (01:18) wrong based on 3308 sessions

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The Official Guide for GMAT Review, 10th Edition, 2003

Practice Question
Question No.: SC 255
Page: 693

The bank holds \$3 billion in loans that are seriously delinquent or in such trouble that they do not expect payments when due.

(A) they do not expect payments when
(B) it does not expect payments when it is
(C) it does not expect payments to be made when they are
(D) payments are not to be expected to be paid when
(E) payments are not expected to be paid when they will be

Spoiler: :: nytimes article

Loans for commercial real estate were especially attractive when the local economy was strong because they produced the high profits needed to pay for expensive acquisitions. But by September 1990, with the New England economy soured, almost half the loans the company had made for construction projects, and nearly 20 percent of its mortgage loans for commercial projects, were delinquent. The company holds \$3.3 billion of loans that are seriously delinquent or in such trouble that payments are not expected when due. Huge Loss Reported

Originally posted by Mishari on 04 May 2007, 15:07.
Last edited by Bunuel on 30 Sep 2018, 21:06, edited 3 times in total.
Renamed the topic and edited the question.
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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04 May 2007, 21:31
17
1
9
The bank holds \$3 billion in loans that are seriously delinquent or in such trouble that they do not expect payments when due.

(A) they do not expect payments when
(B) it does not expect payments when it is
(C) it does not expect payments to be made when they are
(D) payments are not to be expected to be paid when
(E) payments are not expected to be paid when they will be

C for me too.

A - is wrong because of "they".
B - is wrong because of "payments when it"
D and E are wrong for using paid. payments are not paid, they are made.
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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04 May 2007, 15:36
2
I think it is "C" but I'm not great with SC.

I say "C" because 'they' refers to bank, but bank is singular (and neuter) so
we need an 'it' so choice A is out. D and E just seem clumsy. B uses another 'it' to refer to payments - which is plural so you would need a 'they'
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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19 May 2013, 10:43
2
1
The bank holds \$3 billion in loans that are seriously delinquent or in such trouble that they do not expect payments when due.

(A) they do not expect payments when --- they refers to bank which is incorrect as bank is singular and should use it
(B) it does not expect payments when it is -- ambiguous usage of second it . the second it should be replaced by "they" as it should refer to payments .
(C) it does not expect payments to be made when they are -- correct . it refers to bank and they refers to payments
(D) payments are not to be expected to be paid when -- payments and paid are redundant usages.
(E) payments are not expected to be paid when they will be -- payments and paid are redundant usages.
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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21 May 2013, 03:02
I have a doubt regarding these question:
If we break down question into clauses then
clause 1 The bank holds \$3 billion in loans
clause 2: that are seriously delinquent or in such trouble <== In clause 2 'that' refers to loans hence followed by plural verb "are"
clause 3: that it does not expect payments to be made when they are due <== In clause 3 "that" refers to "trouble" so it should be provided by singular verb,but in option "C" we are introducing pronoun "It" after "that"
then the verb form "does not" will be for pronoun "It" rather than "trouble"

If my understanding for relative pronoun "that" is correct then option "C" would be wrong..
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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21 May 2013, 03:20
1
WarriorGmat wrote:
I have a doubt regarding these question:
If we break down question into clauses then
clause 1 The bank holds \$3 billion in loans
clause 2: that are seriously delinquent or in such trouble <== In clause 2 'that' refers to loans hence followed by plural verb "are"
clause 3: that it does not expect payments to be made when they are due <== In clause 3 "that" refers to "trouble" so it should be provided by singular verb,but in option "C" we are introducing pronoun "It" after "that"
then the verb form "does not" will be for pronoun "It" rather than "trouble"

If my understanding for relative pronoun "that" is correct then option "C" would be wrong..

There are two "that"s in the sentence -- first "that" is a modifier and the second "that" is a subordinating conjunction (not a relative pronoun). Here, the second "that" is used to link the dependent clause with the main clause. Hence, use of the second "that" is correct.
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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07 Apr 2014, 06:57
5
Its C.

The bank holds \$3 billion in loans that are seriously delinquent or in such trouble that they do not expect payments when due.

(A) they do not expect payments when-- use of they for bank -- incorrect
(B) it does not expect payments when it is -it..it .. ambiguous -- incorrect
(C) it does not expect payments to be made when they are -- can't find any issues yet..hold it
(D) payments are not to be expected to be paid when -- payments to be paid -- redundancy .
(E) payments are not expected to be paid when they will be -- payments to be paid -- redundancy .
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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18 Jun 2014, 13:18
1
The bank holds \$3 billion in loans that are seriously delinquent or in such trouble that they do not expect payments when due.

(A) they do not expect payments when - The bank - Singular
(B) it does not expect payments when it is -> it doesn't agree in number with payments
(C) it does not expect payments to be made when they are - Perfect
(D) payments are not to be expected to be paid when -> payments are not expected to be paid when -> correct
(E) payments are not expected to be paid when they will be -> "when" refers to be the time instance -> the time instance "when" loans are due.
Also who is not expecting? Bank or who else. The original sentence was quite clear on that. Bank doesn't expect that.

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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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06 Aug 2014, 01:24
1
In the option C, I think that they is ambiguous as it refers to either 'Payments' or 'Loans'. Please suggest.
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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06 Aug 2014, 02:24
1
Please use pronoun ambiguity (such as in this case where they can refer to either 'Payments' or 'Loans') as a last resort to dis-regard a choice.

One should learn to distinguish between pronoun ambiguity (as is the case here, where a pronoun has multiple antecedents) and orphan pronoun (where pronoun has no antecedent).

Pronoun ambiguity is acceptable on GMAT; orphan pronoun is always incorrect.

p.s. Our book SC Nirvana discusses pronouns, their application and examples in significant detail. If you can PM you email, I can send you the corresponding section.
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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20 Nov 2014, 05:41
1
The bank holds \$3 billion in loans that are seriously delinquent or in such trouble that they do not expect payments when due.

(A) they do not expect payments when - They must be It as Ban is singular
(B) it does not expect payments when it is - second it refers to payments hence it must be plural

(C) it does not expect payments to be made when they are - Correct.
(D) payments are not to be expected to be paid when - Passive and wordy
(E) payments are not expected to be paid when they will be - passive and wordy

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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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25 Feb 2017, 13:59
1
The bank holds \$3 billion in loans that are seriously delinquent or in such trouble that they do not expect payments when due.

Issue: Pronoun reference

Analysis:
1. We need singular pronoun "it" to refer to bank (since there is only single bank)
2. As the word "payment(s)" and it's pronoun is also underlined, we need to make sure that they agree in number as well

(A) they do not expect payments when
- "they" is incorrect pronoun

(B) it does not expect payments when it is
- "it is" is in the wrong form; it should be "they are"

(C) it does not expect payments to be made when they are

(D) payments are not to be expected to be paid when
- passive voice

(E) payments are not expected to be paid when they will be
- "payments" and "to be paid" is redundant
- "will" is the wrong form the verb here

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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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24 Apr 2018, 20:43
Mishari wrote:
The Official Guide for GMAT Review, 10th Edition, 2003

Practice Question
Question No.: SC 255
Page: 693

The bank holds \$3 billion in loans that are seriously delinquent or in such trouble that they do not expect payments when due.

We have few nouns here such as "bank", "loans", and "payments".

(A) they do not expect payments when

(B) it does not expect payments when it is

(C) it does not expect payments to be made when they are

(D) payments are not to be expected to be paid when

(E) payments are not expected to be paid when they will be

A. "they" wrongly refers to singular "bank" and "it" wrongly refers to plural "payments". Also there is a meaning issue.

B. "it" wrongly refers to plural "payments".

C. Meaning issue. Banks can't expect themselves.

D. Awkwardly written "to be" twice.

E. Correct
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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30 Apr 2018, 06:18
Here Bank is Singular. Then how can we use "expect" ? It should have been "expects" right ??

Kindly explain anybody ................
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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30 Apr 2018, 07:41
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tausif2786 wrote:
Here Bank is Singular. Then how can we use "expect" ? It should have been "expects" right ??

Kindly explain anybody ................

When you negate the simple present tense sentences, you don't use verb with "s".

For example
Positive: Jack eats ice-cream every day.
Negative: Jack doesn’t eat ice-cream every day.

Likewise,
Positive: The bank holds \$3 billion in loans that are seriously delinquent or in such trouble that it expects payments to be made when they are due

Negative: The bank holds \$3 billion in loans that are seriously delinquent or in such trouble that it (bank) does not expect payments to be made when they (payments) are due.

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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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18 Jun 2018, 18:25
Mishari wrote:
The Official Guide for GMAT Review, 10th Edition, 2003

Practice Question
Question No.: SC 255
Page: 693

The bank holds \$3 billion in loans that are seriously delinquent or in such trouble that they do not expect payments when due.

(A) they do not expect payments when
(B) it does not expect payments when it is
(C) it does not expect payments to be made when they are
(D) payments are not to be expected to be paid when
(E) payments are not expected to be paid when they will be

I went for E and found that it is wrong.
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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18 Jun 2018, 22:18
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Hi jackspire, E says:

payments are not expected to be paid when they will be due.

The issue with this is that E is passive voice. Here, it is not clear as to who is not expected to make payments.

The original sentence clearly intends to depict that the bank is not expected to make payments. That meaning is not coming out in E.

Concealing the doer of the action is often a big problem with passive voice constructs.

p.s. Our book EducationAisle Sentence Correction Nirvana discusses Passive voice, its application and examples in significant detail. If someone is interested, PM me your email-id; I can mail the corresponding section.
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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30 Sep 2018, 12:43
tausif2786 wrote:
Here Bank is Singular. Then how can we use "expect" ? It should have been "expects" right ??

Kindly explain anybody ................

Dear tausif2786,

When you negate the tense in a simple present you use "does" in place of "do"/direct verb. "Does", in this case takes the singular charm from verb of the sentence.
For eg.
Negation: It doesn't expect payments to be made when they are....
Normal: It expects payments to be made when they are......
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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11 Nov 2018, 04:25
The bank holds \$3 billion in loans that are seriously delinquent or in such trouble that they do not expect payments when due.

(A) they do not expect payments when
(B) it does not expect payments when it is
(C) it does not expect payments to be made when they are
(D) payments are not to be expected to be paid when
(E) payments are not expected to be paid when they will be
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Re: The bank holds \$3 billion in loans that are seriously delinquent or in  [#permalink]

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14 Nov 2018, 23:30
pay and payments are wordy！the answer is C
Re: The bank holds \$3 billion in loans that are seriously delinquent or in   [#permalink] 14 Nov 2018, 23:30

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