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The more incentives there are for banks to provide home mortgages, the

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New post 19 Aug 2019, 07:33
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The more incentives there are for banks to provide home mortgages, the more mortgage options banks will provide to cater to different circumstances, and the odds that a potential home buyer is able to purchase a home are increased when more mortgage options are available. Therefore, by increasing incentives to banks to provide home mortgages, the government can create circumstances that are more helpful for home buyers.

If the statements above are true, which of the following must be true?


A. The providers of mortgages can be of most help to potential home buyers by providing numerous financing options.

B. The higher are the odds that a potential home buyer can purchase a home, the more numerous are mortgage options provided to that potential home buyer.

C. If incentives to banks to provide home mortgages are increased, the odds are increased that a potential home buyer will be able to purchase a home.

D. The more the government provides incentives to banks to provide home mortgages, the greater are the odds that home buyers will pay off their mortgages on time.

E. The more restrictions that are placed on banks' providing home mortgages, the lower are the odds that a potential home buyer will be able to purchase a home.

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Re: The more incentives there are for banks to provide home mortgages, the  [#permalink]

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New post 19 Aug 2019, 08:08
Argument Analysis: If banks get more incentives to provide home mortgages, the bank will provide more options for potential home buyers. When more such options are available, the odds are increased of the potential home buyers to avail a mortgage suitable to them. The argument goes on to say that through the incentives to banks, the government can create better circumstance to potential home buyers.

Question Type: The stem contains must be true, hence this is an INFERENCE question.

Pre Thinking: We need to find something along the lines of how the incentives to banks will influence the choices for home buyers without any new information.

A - We cannot say the more finance options will be helpful. What if all the numerous options given does not match the home buyers financial needs.
B - It is actually the other way round. The more mortgage options available leads to higher odds of home buyers buying the home. Not higher odds of buying leads to better finance options.
C - The odds that a potential home buyer will be able to purchase a home will NOT INCREASE if the banks are given the incentives. It is the numerous options that banks give increases the odds of the potential home buyers buying a home.
D - Paying off mortgage debt is out of scope. Sure the better finance option has helped the home buyer in buying the home but that doesn't mean they will pay off the debt. What if they choose not to pay?
E - When the banks are put more restrictions, then the banks will be forced to not give any better financial options for the potential home buyers. This will actually lower the odds of potential home buyer to purchase a home because of tighter and not flexible mortgage options.

The correct answer is E
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Re: The more incentives there are for banks to provide home mortgages, the  [#permalink]

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New post 19 Aug 2019, 08:52
IMO C

Essence of argument is

Banks are given more incentives--> More mortgages--> more favorable conditions for homebuyers to buy homes

Let us look at the options now:

A. The providers of mortgages can be of most help to potential home buyers by providing numerous financing options. Numerous financing options are not mentioned in the argument

B. The higher are the odds that a potential home buyer can purchase a home, the more numerous are mortgage options provided to that potential home buyer. A causes B does not mean B causes A

C. If incentives to banks to provide home mortgages are increased, the odds are increased that a potential home buyer will be able to purchase a home. In line with the argument. Correct

D. The more the government provides incentives to banks to provide home mortgages, the greater are the odds that home buyers will pay off their mortgages on time.no info about pay off of loans provided in the argument

E. The more restrictions that are placed on banks' providing home mortgages, the lower are the odds that a potential home buyer will be able to purchase a home. A causes B does not mean not A causes not B
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Re: The more incentives there are for banks to provide home mortgages, the  [#permalink]

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New post 19 Aug 2019, 09:12
The more incentives there are for banks to provide home mortgages, the more mortgage options banks will provide to cater to different circumstances, and the odds that a potential home buyer is able to purchase a home are increased when more mortgage options are available. Therefore, by increasing incentives to banks to provide home mortgages, the government can create circumstances that are more helpful for home buyers.

If the statements above are true, which of the following must be true?

Logical reasoning: -

More incentives to bank for Home Mortgage => More mortgage options => Increased odds that home buyer will purchase a home


Quote:
A. The providers of mortgages can be of most help to potential home buyers by providing numerous financing options.

Use of most is incorrect

Quote:
B. The higher are the odds that a potential home buyer can purchase a home, the more numerous are mortgage options provided to that potential home buyer.

Incorrect cause & effect relationship. Incorrect

Quote:
C. If incentives to banks to provide home mortgages are increased, the odds are increased that a potential home buyer will be able to purchase a home.

MUST BE TRUE. Mimics logical reasoning.

Quote:
D. The more the government provides incentives to banks to provide home mortgages, the greater are the odds that home buyers will pay off their mortgages on time.

No mention is made that home buyers will pay off their mortgages on time. Incorrect

Quote:
E. The more restrictions that are placed on banks' providing home mortgages, the lower are the odds that a potential home buyer will be able to purchase a home.

MAY NOT BE TRUE
Lower odds that home buyers will be able to purchase a home => Less incentives to banks provide home mortgage. mimics logical reasoning of the argument.

IMO C
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Re: The more incentives there are for banks to provide home mortgages, the  [#permalink]

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New post 19 Aug 2019, 09:43
The more incentives there are for banks to provide home mortgages ( consider as x)
, the more mortgage options banks will provide to cater to different circumstances,(consider as Y)
and the odds that a potential home buyer is able to purchase a home are increased when more mortgage options are available.( consider as Z)


Therefore, by increasing incentives to banks to provide home mortgages, the government can create circumstances that are more helpful for home buyers.(x gives Y)

so x increases then y increases which inturn increases the z is given . so x gives y

type : inference question


A. The providers of mortgages can be of most help to potential home buyers by providing numerous financing options.( financing options are not mentioned in the passage. so irrelevant. hence wrong)

B. The higher are the odds that a potential home buyer can purchase a home, the more numerous are mortgage options provided to that potential home buyer.( option z increases then option x increases . which is not given in question. hence wrong )


C. If incentives to banks to provide home mortgages are increased, the odds are increased that a potential home buyer will be able to purchase a home. correct choice, if x increases , z increases which is what given in the question

D. The more the government provides incentives to banks to provide home mortgages, the greater are the odds that home buyers will pay off their mortgages on time.(paying mortgages on time is not given in the question. . so irrelevant. hence wrong)


E. The more restrictions that are placed on banks' providing home mortgages, the lower are the odds that a potential home buyer will be able to purchase a home. ( not x then not y is not the logical consequence of x gives y.. infact not y gives not x. hence wrong)
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Re: The more incentives there are for banks to provide home mortgages, the  [#permalink]

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New post 19 Aug 2019, 10:57
The more incentives there are for banks to provide home mortgages, the more mortgage options banks will provide to cater to different circumstances, and the odds that a potential home buyer is able to purchase a home are increased when more mortgage options are available. Therefore, by increasing incentives to banks to provide home mortgages, the government can create circumstances that are more helpful for home buyers.

If the statements above are true, which of the following must be true? or in other words, we have to find the statement which can be directly inferred from the above statements.


A. The providers of mortgages can be of most help to potential home buyers by providing numerous financing options. Too extreme. We dont know if providing numerous financing options is the MOST helpful or not.
TIP: Always try to avoid extreme words

B. The higher are the odds that a potential home buyer can purchase a home, the more numerous are mortgage options provided to that potential home buyer. - We can't just infer this because the opposite is true. We are told that if options increase - odds that a person will purchase a home increase. NOT the other way around. This is a common trap. Always think twice when you read something like this.

C. If incentives to banks to provide home mortgages are increased, the odds are increased that a potential home buyer will be able to purchase a home. - exactly what the statements say

D. The more the government provides incentives to banks to provide home mortgages, the greater are the odds that home buyers will pay off their mortgages on time. - ABSOLUTELY NOWHERE do we talk about paying off mortgages.

E. The more restrictions that are placed on banks' providing home mortgages, the lower are the odds that a potential home buyer will be able to purchase a home. AGAIN nowhere are we talking about any restrictions.
This would have been a good option choice for strengthen type question. For inference questions ALWAYS stick with what is given, don't deviate even 1%. The answer is usually a restatement of the question stem.
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Re: The more incentives there are for banks to provide home mortgages, the  [#permalink]

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New post 19 Aug 2019, 11:00
The more incentives there are for banks to provide home mortgages, the more mortgage options banks will provide to cater to different circumstances, and the odds that a potential home buyer is able to purchase a home are increased when more mortgage options are available. Therefore, by increasing incentives to banks to provide home mortgages, the government can create circumstances that are more helpful for home buyers.

If the statements above are true, which of the following must be true?

The question presents us a situation in which one thing leads to second which leads to a third one i.e. More incentives to banks → more mortgage options → more the odds in favour of a potential home buyer. Argument concludes that government can create more suitable circumstances for home buyers by increasing incentives to banks. Thus More incentives to banks → more the odds in favour of a potential home buyer.

A. The providers of mortgages can be of most help to potential home buyers by providing numerous financing options. – WRONG. Whether providers of mortgages are MOST helpful can’t be established from the above argument.

B. The higher are the odds that a potential home buyer can purchase a home, the more numerous are mortgage options provided to that potential home buyer. – WRONG. This is a reverse of what is stated in the argument.

C. If incentives to banks to provide home mortgages are increased, the odds are increased that a potential home buyer will be able to purchase a home. – CORRECT. As discussed above more incentives to banks → more the odds in favour of a potential home buyer.

D. The more the government provides incentives to banks to provide home mortgages, the greater are the odds that home buyers will pay off their mortgages on time. – WRONG. Paying off mortgages is not talked about in argument. Irrelevant.

E. The more restrictions that are placed on banks' providing home mortgages, the lower are the odds that a potential home buyer will be able to purchase a home. – WRONG. Similar to option ‘B’ this one reverses statement that is mentioned in the argument.


IMO Answer (C).
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Re: The more incentives there are for banks to provide home mortgages, the  [#permalink]

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New post 19 Aug 2019, 11:23
A. The providers of mortgages can be of most help to potential home buyers by providing numerous financing options. - How the providers of mortgages will be of help to potential home buyers is not stated.

B. The higher are the odds that a potential home buyer can purchase a home, the more numerous are mortgage options provided to that potential home buyer.- The argument states that if more mortgage options are provided to potential home buyer then there will be higher odds to purchase. This statement states the reverses the cause and effect.

C. If incentives to banks to provide home mortgages are increased, the odds are increased that a potential home buyer will be able to purchase a home. correct

D. The more the government provides incentives to banks to provide home mortgages, the greater are the odds that home buyers will pay off their mortgages on time. - nothing mentioned about payment of mortgage

E. The more restrictions that are placed on banks' providing home mortgages, the lower are the odds that a potential home buyer will be able to purchase a home. - what will happen if restrictions are placed is not mentioned in the passage.
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Re: The more incentives there are for banks to provide home mortgages, the  [#permalink]

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New post 19 Aug 2019, 12:05
IMO C

Premise : Providing of incentive is directly linked to probability that more home owners will be able to buy the house. Thus linking incentives with mortgages will be win win situation for buyers.

Option C correctly tell the same meaning
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Re: The more incentives there are for banks to provide home mortgages, the  [#permalink]

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New post 19 Aug 2019, 13:14
Quote:
The more incentives there are for banks to provide home mortgages, the more mortgage options banks will provide to cater to different circumstances, and the odds that a potential home buyer is able to purchase a home are increased when more mortgage options are available. Therefore, by increasing incentives to banks to provide home mortgages, the government can create circumstances that are more helpful for home buyers.

If the statements above are true, which of the following must be true?

A. The providers of mortgages can be of most help to potential home buyers by providing numerous financing options.
B. The higher are the odds that a potential home buyer can purchase a home, the more numerous are mortgage options provided to that potential home buyer.
C. If incentives to banks to provide home mortgages are increased, the odds are increased that a potential home buyer will be able to purchase a home.
D. The more the government provides incentives to banks to provide home mortgages, the greater are the odds that home buyers will pay off their mortgages on time.
E. The more restrictions that are placed on banks' providing home mortgages, the lower are the odds that a potential home buyer will be able to purchase a home.


argument: (1) the more incentives for banks to provide mortgages, (2) the more options are provided, and (3) the greater are the odds that a home buyer will purchase a home.

(A) "financing options" were not stated, out;
(B) the inverse is true, out;
(D) "will pay off their mortgages on time" was not stated, out;
(E) we cannot assume this, since it was not stated, out;

Answer (C).
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Re: The more incentives there are for banks to provide home mortgages, the  [#permalink]

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New post 19 Aug 2019, 15:34
Category: inference
Question stem: if argument is true, then which of these are true?

Premise:
- incentivised banks provide more mortgage options, which in turn increases chance of buying a house for buyers

Conclusion:
Government should incentivise banks to provide mortgages so that more people can purchase houses

Options:
A. Incorrect - "financing options" and "mortgages" are not equal.

B. Incorrect - should be the other way around.

C. CORRECT - doing so will increase the no. of mortgages, hence increasing the chances of the masses to buy a house.

D. Incorrect - irrelevant. The argument does not discuss timely payment of mortgages.

E. Incorrect - though similar to C, this is a leap as the argument does not discuss the implications of restrictions.

Correct answer is C.

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Re: The more incentives there are for banks to provide home mortgages, the  [#permalink]

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New post 19 Aug 2019, 16:35
Option A says that providers of mortgages can be of most help to potential home buyers by providing numerous financing options. This is erroneous because the points presented in the argument clearly indicates that mortgage providers rely on the incentives they receive to provide home mortgages in order to make available more mortgage options to cater for different circumstances. In addition, the use of "can be of most help ..." expresses an extremity which cannot be inferred from the narrative above.

Option B suggests that higher odds that a potential home buyer can purchase a home is what leads to the provision of more mortgage options by mortgage banks. It is rather the incentives provided to mortgage banks that lead them to provide more mortgage options, which in turn results in higher odds for the potential home buyer.

D introduces an information home buyers will be able to pay their off their mortgages on time, and this cannot be inferred from the argument presented above. Hence, D can be eliminated.

E also provides information which states that when more restrictions are placed on mortgage providers, it results in lower odds, an assertion which is not necessarily true. There could be restrictions which may not affect a bank's ability to provide more mortgage options to its clients. Besides, the argument's focus is on how increased provision of incentives to mortgage banks results in the mortgage provider making available more mortgage options which in turn results in increased odds for the home buyer.

C is the right answer. This is because it clearly states that if incentives provided to banks to provide home mortgages are increased, the odds for home buyers to purchase a home correspondingly increases.
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Re: The more incentives there are for banks to provide home mortgages, the  [#permalink]

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New post 20 Aug 2019, 06:40
Quote:
The more incentives there are for banks to provide home mortgages, the more mortgage options banks will provide to cater to different circumstances, and the odds that a potential home buyer is able to purchase a home are increased when more mortgage options are available. Therefore, by increasing incentives to banks to provide home mortgages, the government can create circumstances that are more helpful for home buyers.

If the statements above are true, which of the following must be true?


A. The providers of mortgages can be of most help to potential home buyers by providing numerous financing options.

B. The higher are the odds that a potential home buyer can purchase a home, the more numerous are mortgage options provided to that potential home buyer.

C. If incentives to banks to provide home mortgages are increased, the odds are increased that a potential home buyer will be able to purchase a home.

D. The more the government provides incentives to banks to provide home mortgages, the greater are the odds that home buyers will pay off their mortgages on time.

E. The more restrictions that are placed on banks' providing home mortgages, the lower are the odds that a potential home buyer will be able to purchase a home.


Official Explanation:




Reading the question: the prompt presents dubious facts in rapid succession. A natural and healthy impulse is to want to rip the flimsy argument to shreds. However, we don't argue with facts on these questions: what is stated as a fact is a fact. And the question stem is asking us what "must be true," given the prompt. So we should accept the prompt and see what can be inferred from it. We can skip using a filter altogether and go straight to applying the logical test to each answer choice: must it be true? Nothing else matters--including whether the answer choice seems plausible or important.

Logical proof: Testing the logic of each answer choice, we start by finding that (A) need not be true. We are told that mortgage options are helpful to customers, but not that they are most helpful. So (A) is out. Choice (B) is illogical. The converse of a true statement need not be true, and (B) is the converse of a statement in the prompt. Choice (C) looks correct. The prompt tells us, in logical terms, that X->Y->Z. Answer choice (C) says X->Z, which must be true if X->Y->Z. So (C) is in. Choice (D) looks similar to (C) at first, but it introduces a new concept of paying off mortgages on time, and we're not going to be able to establish anything about that concept that "must be true" from the information in the prompt. Choice (E) also contains an out-of-scope element, "restrictions," which we are told nothing about and hence can't draw conclusions about.

The correct answer is (C).
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Re: The more incentives there are for banks to provide home mortgages, the   [#permalink] 20 Aug 2019, 06:40
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