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

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Intern
Joined: 27 Dec 2018
Posts: 33
GMAT 1: 550 Q47 V19
The financial crisis of 2008 took place because increase in housing pr  [#permalink]

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Updated on: 22 Jul 2019, 21:51
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Difficulty:

5% (low)

Question Stats:

78% (00:59) correct 22% (01:28) wrong based on 98 sessions

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

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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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22 Jul 2019, 21:52
Hazel1134 wrote:
Is it just me or this question does not have the underline? I went wuuuuut? at first. Fix please

Posted from my mobile device

_________________________
Underlined. Thank you.
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The financial crisis of 2008 took place because increase in housing pr  [#permalink]

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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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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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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.

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