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21 Jan 2020, 10:34
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
86% (01:39) correct
14%
(02:01)
wrong
based on 673
sessions
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The government provides insurance for individuals’ bank deposits, but requires the banks to pay the premiums for the insurance. Since it is depositors who primarily benefit from the security this insurance provides, the government should take steps to ensure that depositors who want this security bear the cost of it and thus should make depositors pay the premiums for insuring their own accounts.
Which one of the following principles, if established, would do most to justify drawing the conclusion of the argument on the basis of the reasons offered in its support?
(A) The people who stand to benefit from an economic service should always be made to bear the costs of that service.
(B) Any rational system of insurance must base the size of premiums on the degree of risk involved.
(C) Government-backed security for investors, such as bank depositors, should be provided only when it does not reduce incentives for investors to make responsible investments.
(D) The choice of not accepting an offered service should always be available, even if there is no charge for the service.
(E) The government should avoid any actions that might alter the behavior of corporations and individuals in the market.
Which one of the following principles, if established, would do most to justify drawing the conclusion of the argument on the basis of the reasons offered in its support?
(A) The people who stand to benefit from an economic service should always be made to bear the costs of that service.
(B) Any rational system of insurance must base the size of premiums on the degree of risk involved.
(C) Government-backed security for investors, such as bank depositors, should be provided only when it does not reduce incentives for investors to make responsible investments.
(D) The choice of not accepting an offered service should always be available, even if there is no charge for the service.
(E) The government should avoid any actions that might alter the behavior of corporations and individuals in the market.
13 Apr 2021, 00:45
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Bunuel
OFFICIAL EXPLANATION
(A) Yes. The point of the passage is that those who benefit from bank deposit insurance should pay for the insurance.
(B) No. The conclusion of the passage is that the people who benefit from bank deposit insurance should pay for the insurance. The principle in this answer-choice does not relate to that situation.
(C) No. There is no discussion of incentives in the passage.
(D) No. The passage is about requiring people to pay for any services they receive. It does not discuss whether or not they should be allowed to choose receiving a service.
(E) No. There is no discussion about altering the behavior of corporations or individuals.
General Discussion
29 Jan 2020, 09:30
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It says since govt makes banks pay the premium on securing my account and i stand to benefit if something goes wrong with the bank then I should pay for the benefit i am enjoying and bank is paying the price. Option A clearly says one should pay for service if one stands to gain from that service. Option A is the answer. This is easy. 35 sec question i would say.
