GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 22 Aug 2019, 22:00

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

The National Bank Act was passed in 1864 to provide a uniform currency

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Senior RC Moderator
User avatar
V
Joined: 02 Nov 2016
Posts: 3464
GPA: 3.39
Re: The National Bank Act was passed in 1864 to provide a uniform currency  [#permalink]

Show Tags

New post 09 Aug 2019, 04:05
Official Explanation


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

Difficulty Level: 750

Explanation

In paragraph two, the capitalization requirements for banks are discussed, and the minimum capitalization for a small town of 6,000 or less is set at $50,000. Thus, answer choice E is true - such a bank would not qualify for a federal charter. Choice A is incorrect as the passage does not stipulate the next level above 6,000 residents; it could be that that level held for cities up to 20,000 or more. And choice B is wrong in that the capitalization requirement is only one of the requirement to receive a charter. Such a bank may have failed another requirement. Choice C is incorrect, as the stipulations only talk about the minimum requirements, and don't say that there would be anything stopping a smaller-town bank from exceeding that total. And choice D is wrong for the same reason; we know the minimum capitalization but not the maximum, so such a bank could have had more cash on hand than $200,000.

Answer: E


Hope it helps

madhukaramar wrote:
Hello carcass - could you explain question 3 here. I don't think any of the answer choices are correct - My explanation for option a below

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.

As per the passage -
# 6000 people --- 50,000 (min capitalization)
(but reverse will not always be true). Right ?? so 50 K min capitalization can be in two cases -
CASE 1 - less than 6000 people
CASE 2 - more than 6000 people.
Only other data point we have is for 50,000 people - 200,000 capitalization
So how can we infer a is correct ???

_________________
For new project RC Butler 2019: Click here
New! Need for an RC strategy and practice? Click here
Patterns among those who have scored 750+(2019 Edition) Click here
For all GMAT Flashcards => Click here
GMAT Club Bot
Re: The National Bank Act was passed in 1864 to provide a uniform currency   [#permalink] 09 Aug 2019, 04:05

Go to page   Previous    1   2   [ 21 posts ] 

Display posts from previous: Sort by

The National Bank Act was passed in 1864 to provide a uniform currency

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne