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Hi

Veritas prep rates this passage as 600 level.

Am I the only one who is finding this passage a bit difficult or is it really a 600 level passage?

Request experts experts and others opinion on the difficulty level of veritas prep passages

Thanks
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tejyr
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can someone please explain the answer for the third question??
I am having hard time understanding it :(
This Act permitted five or more persons to charter a national bank, the charter being issued by the federal government. The bank’s capitalization depended upon the size of the town in which the bank was located, with the capitalization level going higher for larger cities. For example, banks in towns of less than 6,000 people had to have a minimum capitalization of $50,000; banks in cities of 50,000 people or more had to have a minimum capitalization of $200,000.

Q3 which you are having doubt is inferred from the above sentence of 3rd para last line. Actually this type of inference does not refer to any particular aspect in question but as per the options (which have $ and people) I got to this line.

(A) A national bank with an initial capitalization of $50,000 in 1864 must have been located in a city of less than 6,000 residents.-For example, banks in towns of less than 6,000 people had to have a minimum capitalization of $50,000; banks in cities of 50,000 people or more had to have a minimum capitalization of $200,000
inferrable which is exact as above pasted example line
(B) A national bank with an initial capitalization of $225,000 would be guaranteed a federal charter regardless of location.-Can't be inferred nowhere stated like that
(C) A national bank with an initial capitalization of $250,000 in 1864 must have been located in a city of more than 50,000 residents.-For example, banks in towns of less than 6,000 people had to have a minimum capitalization of $50,000; banks in cities of 50,000 people or more had to have a minimum capitalization of $200,000
-We can't infer as only we know >50000 residents there will be min $200000 also <6000 can have $250000 as min is $50000
(D) A national bank located in a city with 40,000 residents must have had an initial capitalization of between $50,000 and $200,000.-Can't be inferred
(E) A national bank with an initial capitalization of $45,000 would not have received a charter from the federal government.-Can't be inferred

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Could someone explain the answers to all 3 questions ?
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Montyyy95
Could someone explain the answers to all 3 questions ?

Please follow explanations in below links.

https://gmatclub.com/forum/the-national ... l#p1961068

https://gmatclub.com/forum/the-national ... l#p2333902

https://gmatclub.com/forum/the-national ... l#p2068100

Good Luck
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HI GMATNinja would love your two cents on these inference questions ..
Thanks :-)
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Hi All,
Can someone please explain the third question?
It seems that (A) and (E) both can be inferred from the passage. Posting the question below for your convenience

Quote:

3. Which of the following can be inferred from the passage?

(A) A national bank with an initial capitalization of $50,000 in 1864 must have been located in a city of less than 6,000 residents.
(B) A national bank with an initial capitalization of $225,000 would be guaranteed a federal charter regardless of location.
(C) A national bank with an initial capitalization of $250,000 in 1864 must have been located in a city of more than 50,000 residents.
(D) A national bank located in a city with 40,000 residents must have had an initial capitalization of between $50,000 and $200,000.
(E) A national bank with an initial capitalization of $45,000 would not have received a charter from the federal government.
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adityaganjoo
Hi All,
Can someone please explain the third question?
It seems that (A) and (E) both can be inferred from the passage. Posting the question below for your convenience

Please read the explanation in the post in link below

https://gmatclub.com/forum/the-national ... l#p2333902

Best
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Sajjad1994
adityaganjoo
Hi All,
Can someone please explain the third question?
It seems that (A) and (E) both can be inferred from the passage. Posting the question below for your convenience

Please read the explanation in the post in link below

https://gmatclub.com/forum/the-national ... l#p2333902

Best

Hi Sajjad1994 Official explanation does not elaborate the issue clearly
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Sajjad1994
adityaganjoo
Hi All,
Can someone please explain the third question?
It seems that (A) and (E) both can be inferred from the passage. Posting the question below for your convenience

Please read the explanation in the post in link below

https://gmatclub.com/forum/the-national ... l#p2333902

Best

Hi Sajjad1994 Official explanation does not elaborate the issue clearly


Hi adityaganjoo,

Quote:
(A) A national bank with an initial capitalization of $50,000 in 1864 must have been located in a city of less than 6,000 residents.

Consider the lines: " banks in towns of less than 6,000 people had to have a minimum capitalization of $50,000; banks in cities of 50,000 people or more had to have a minimum capitalization of $200,000."
While this may seem that a national bank with an initial capitalization of $50,000 in 1864 must have been located in a city of less than 6,000 residents, its not correct. What's mentioned in the passage is that towns having less than 6k population had to have a minimum capitalization of $50,000, but its not mentioned that a bank with $50,000 must have been located in a city with population less than 6k.

Implication: Town with a population limit less than 6k have a min. capitalization limit of $50k, but its not vice-versa. Thus A cannot be inferred from the passage.

Quote:
(E) A national bank with an initial capitalization of $45,000 would not have received a charter from the federal government.

Since $50k was the minimum limit for any population between 6k - 50k, E is the correct answer.

Hope This Helps.
Thanks.
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bm2201 So, a bank with a capitalization of $50,000 could also be located in a place which is smaller than a town, right?
Thanks! This helped!
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Question 3 : I opted for Option A and not able to understand as to why its in incorrect inspite of re reading the passage .

Please help share the insights on the same

Also I took 11 minute to read the passage and got the first 2 questions right. Not sure if thats the right approach. Please suggest what should be my average time for reading passages as I feel I got the first 2 correct but at the cost of time
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nivi2084
Question 3 : I opted for Option A and not able to understand as to why its in incorrect inspite of re reading the passage .

Please help share the insights on the same

Also I took 11 minute to read the passage and got the first 2 questions right. Not sure if thats the right approach. Please suggest what should be my average time for reading passages as I feel I got the first 2 correct but at the cost of time


Hi nivi2084,

Let me know if the below explanation of mine helps you to eliminate option A.

https://gmatclub.com/forum/the-national-bank-act-was-passed-in-1864-to-provide-a-uniform-currency-192179-20.html#p2815613

and you can also refer the OE here:

https://gmatclub.com/forum/the-national-bank-act-was-passed-in-1864-to-provide-a-uniform-currency-192179-20.html#p2333902


Thanks.
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JarvisR Sajjad1994


Please add the following questions.

Q. According to the passage, a large state bank In New York City would most likely take which of the following actions following the passage of the National Bank Act?

A) Immediately give up its state charter and adopt the national currency
B) Switch its name to increase consumer confidence
C) Stop issuing state bank notes in order to increase prestige
D) Continue to increase its use of checks
E) Demand that the federal government reduce its state note tax


Q. Which of the followed can be inferred from the passage about the National Bank Act of 1864?

A) It would not have met its goals without additional legislation
B) It reduced the problem of bank note counterfeiting
C) It increased convenience for banking customers by requiring checks
D) It increased the market for government bonds
E) It contributed to a more homogenous national currency
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SwaroopJoshi
JarvisR Sajjad1994


Please add the following questions.

Q. According to the passage, a large state bank In New York City would most likely take which of the following actions following the passage of the National Bank Act?

A) Immediately give up its state charter and adopt the national currency
B) Switch its name to increase consumer confidence
C) Stop issuing state bank notes in order to increase prestige
D) Continue to increase its use of checks
E) Demand that the federal government reduce its state note tax


Q. Which of the followed can be inferred from the passage about the National Bank Act of 1864?

A) It would not have met its goals without additional legislation
B) It reduced the problem of bank note counterfeiting
C) It increased convenience for banking customers by requiring checks
D) It increased the market for government bonds
E) It contributed to a more homogenous national currency

Hello SwaroopJoshi

Welcome to GMAT Club!

Thank you for sharing the questions, can you share the OAs of the questions too?
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Sajjad1994

Q. According to the passage, a large state bank In New York City would most likely take which of the following actions following the passage of the National Bank Act?

A) Immediately give up its state charter and adopt the national currency
B) Switch its name to increase consumer confidence
C) Stop issuing state bank notes in order to increase prestige
D) Continue to increase its use of checks
E) Demand that the federal government reduce its state note tax

OA: Option D
OE: For this question, you should go to the last paragraph where large state banks and banks in big cities are discussed. In that paragraph you learn that smaller, less prestigious state banks were more than happy to switch to national charters immediately after the Act was passed because it increased prestige and consumer confidence. However, large well-known state banks did not switch to the national charter until the 10% tax was passed. Therefore, after the passage of the act, a large state bank in New York City would definitely NOT do (A) or (B). Those were things associated with small, lesser-known banks. (C) is also wrong because it was not doing anything to increase prestige as that was not a problem. There is no basis for (E) at all in the passage so you are left with (D). In the following sentence it is clear that large state banks in cities were doing just this: “Those banks that retained state charters were, for the most part, banks in big cities which had been rapidly replacing their notes with check transactions, anyway” Answer is (D).


Q. Which of the followed can be inferred from the passage about the National Bank Act of 1864?

A) It would not have met its goals without additional legislation
B) It reduced the problem of bank note counterfeiting
C) It increased convenience for banking customers by requiring checks
D) It increased the market for government bonds
E) It contributed to a more homogenous national currency

OA- Option E
OE- Again, this is a broad question that requires confirming each answer choice (you will not be looking at only one area in the passage). (A) is incorrect but difficult. You know that the additional legislation in 1865 (the 10% tax) helped dramatically speed up the goals of the original act, but we do NOT know from this that the National Bank Act would not have met its goal without the help of this tax. Remember, the correct answer must be true based upon the passage. For (B) there is no information given about what the Bank Act did to help the problem of counterfeiting – you just know that a problem did exist. For (C), the National Bank Act did not require checks – requiring checks is something that was already taking place in large state banks. For (D), you do not know what effect the National Bank Act had on government bonds. One of the goals was to increase the market for government bonds, but no information was given about whether the goal was achieved. One goal of the National Bank Act was to provide a uniform currency and there is plenty of evidence given in the last paragraph that it was at least partially successful in accomplishing this. Answer is (E)
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Official Explanation

6. The primary purpose of the passage is to:

Explanation

The passage begins by discussing the needs for an act, and then goes on to talk about its effects, meaning that C spans the entire purpose of the passage.

Choice A is incorrect, as only paragraph two really discusses the requirements and only does so to a limited extent.

Choice B is similarly too narrow in scope - it misses the large portion of the passage that discusses the need for the Act.

Choice D is incorrect, as the author's intent was not to argue, but merely to describe.

And choice E is particularly narrow in scope, only coming into play in the last few sentences.

Answer: C
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tejyr
thakushr
can someone please explain the answer for the third question??
I am having hard time understanding it :(
This Act permitted five or more persons to charter a national bank, the charter being issued by the federal government. The bank’s capitalization depended upon the size of the town in which the bank was located, with the capitalization level going higher for larger cities. For example, banks in towns of less than 6,000 people had to have a minimum capitalization of $50,000; banks in cities of 50,000 people or more had to have a minimum capitalization of $200,000.

Q3 which you are having doubt is inferred from the above sentence of 3rd para last line. Actually this type of inference does not refer to any particular aspect in question but as per the options (which have $ and people) I got to this line.

(A) A national bank with an initial capitalization of $50,000 in 1864 must have been located in a city of less than 6,000 residents.-For example, banks in towns of less than 6,000 people had to have a minimum capitalization of $50,000; banks in cities of 50,000 people or more had to have a minimum capitalization of $200,000
inferrable which is exact as above pasted example line
(B) A national bank with an initial capitalization of $225,000 would be guaranteed a federal charter regardless of location.-Can't be inferred nowhere stated like that
(C) A national bank with an initial capitalization of $250,000 in 1864 must have been located in a city of more than 50,000 residents.-For example, banks in towns of less than 6,000 people had to have a minimum capitalization of $50,000; banks in cities of 50,000 people or more had to have a minimum capitalization of $200,000
-We can't infer as only we know >50000 residents there will be min $200000 also <6000 can have $250000 as min is $50000
(D) A national bank located in a city with 40,000 residents must have had an initial capitalization of between $50,000 and $200,000.-Can't be inferred
(E) A national bank with an initial capitalization of $45,000 would not have received a charter from the federal government.-Can't be inferred

---
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But it is showing E as the right answer in the solution?
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