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The financial crisis of 2008 took place because increase in housing pr

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The financial crisis of 2008 took place because increase in housing pr  [#permalink]

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New post Updated on: 22 Jul 2019, 21:51
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Question Stats:

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The financial crisis of 2008 took place because increase in housing prices between 1998 and 2005 lowered the risk on mortgages that, in turn, made the return on mortgage backed securities very attractive.

A. lowered the risk on mortgages that, in turn, made
B. lowered the risk on mortgages, making
C. lowered the risk on mortgages, made
D. and lowering the risk on mortgages that in turn made
E. to lower the risks on mortgages to make

Originally posted by emma4490 on 22 Jul 2019, 07:58.
Last edited by Bunuel on 22 Jul 2019, 21:51, edited 1 time in total.
Underlined.
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Re: The financial crisis of 2008 took place because increase in housing pr  [#permalink]

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New post 22 Jul 2019, 18:01
1
emma4490 wrote:
The financial crisis of 2008 took place because increase in housing prices between 1998 and 2005 lowered the risk on mortgages that, in turn, made the return on mortgage backed securities very attractive.
A. lowered the risk on mortgages that, in turn, made
B. lowered the risk on mortgages, making
C. lowered the risk on mortgages, made
D. and lowering the risk on mortgages that in turn made
E. to lower the risks on mortgages to make


Imo B
This is a fairly easy question if only we know what is leading to what.
Here Risk on mortgages made the return on mortgage backed securities very attractive.
This this casual relation has to be shown in the sentence.
Only B does that by using verb-ing modifier.
Hence it is our answer
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Re: The financial crisis of 2008 took place because increase in housing pr  [#permalink]

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New post 22 Jul 2019, 21:46
Is it just me or this question does not have the underline? I went wuuuuut? at first. Fix please

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Re: The financial crisis of 2008 took place because increase in housing pr  [#permalink]

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New post 22 Jul 2019, 21:52
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The financial crisis of 2008 took place because increase in housing pr  [#permalink]

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New post 22 Jul 2019, 21:56
Hi, 1st of all it is always best to underline whenever you post SC question.
Coming back to your question : It is fairly meaning based question.

"increase in housing prices between 1998 and 2005 lowered the risk on mortgages that, in turn, made the return on mortgage backed securities very attractive."

something made the return on mortgage backed securities very attractive -> what is something here? (A) says "that", which is referring to risk on mortgages. But the actual meaning is that the whole previous clause actually resulted / is resulting in making return on mortgage backed securities very attractive.
So you need to find an answer option which shows the right meaning.
Only B does this.
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Re: The financial crisis of 2008 took place because increase in housing pr  [#permalink]

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New post 22 Jul 2019, 23:09
emma4490 wrote:
The financial crisis of 2008 took place because increase in housing prices between 1998 and 2005 lowered the risk on mortgages that, in turn, made the return on mortgage backed securities very attractive.

A. lowered the risk on mortgages that, in turn, made
B. lowered the risk on mortgages, making
C. lowered the risk on mortgages, made
D. and lowering the risk on mortgages that in turn made
E. to lower the risks on mortgages to make



Why A is not correct. please explain
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Re: The financial crisis of 2008 took place because increase in housing pr  [#permalink]

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New post 23 Jul 2019, 07:57
robu1 wrote:
emma4490 wrote:
The financial crisis of 2008 took place because increase in housing prices between 1998 and 2005 lowered the risk on mortgages that, in turn, made the return on mortgage backed securities very attractive.

A. lowered the risk on mortgages that, in turn, made
B. lowered the risk on mortgages, making
C. lowered the risk on mortgages, made
D. and lowering the risk on mortgages that in turn made
E. to lower the risks on mortgages to make



Why A is not correct. please explain


Hi, my bit on this.

Option A uses "that" which actually acts as a pronoun in this case. Can we clearly point out what "that" if referring to? IMO use of making in option B modifies the whole clause preceding it and that is what the sentence intends to mean.

Read it as follows:
The financial crisis took place because increase in housing prices lowered the risk on mortgages, making the return on mortgage backed securities very attractive.
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Re: The financial crisis of 2008 took place because increase in housing pr   [#permalink] 23 Jul 2019, 07:57
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