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# The recent drop in the prime interest rate probably results from the

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Math Expert
Joined: 02 Sep 2009
Posts: 59634
The recent drop in the prime interest rate probably results from the  [#permalink]

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04 Aug 2019, 00:18
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Difficulty:

35% (medium)

Question Stats:

61% (01:21) correct 39% (01:26) wrong based on 175 sessions

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The recent drop in the prime interest rate probably results from the Federal Reserve Bank's tight money policy and its effect on lending institutions rather than to the drop in the overall rate of inflation

(A) its effect on lending institutions rather than to the drop in the overall
(B) its affect on lending institutions, as opposed to the drop in the overall
(C) it's effect on lending institutions, rather than from the drop in the overall
(D) its effect on lending institutions rather than from the drop in the overall
(E) the effect on lending institutions, rather than to the drop in the overall

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Joined: 21 Nov 2016
Posts: 71
GMAT 1: 640 Q47 V31
Re: The recent drop in the prime interest rate probably results from the  [#permalink]

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04 Aug 2019, 10:29
Seems to be D. Results from... From maintains parallelism

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Joined: 09 Apr 2018
Posts: 7
Re: The recent drop in the prime interest rate probably results from the  [#permalink]

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04 Aug 2019, 19:21
Bunuel wrote:
The recent drop in the prime interest rate probably results from the Federal Reserve Bank's tight money policy and its effect on lending institutions rather than to the drop in the overall rate of inflation

(A) its effect on lending institutions rather than to the drop in the overall
(B) its affect on lending institutions, as opposed to the drop in the overall
(C) it's effect on lending institutions, rather than from the drop in the overall
(D) its effect on lending institutions rather than from the drop in the overall
(E) the effect on lending institutions, rather than to the drop in the overall

Why "from the drop" and not "to the drop" ?
Manager
Joined: 21 Nov 2016
Posts: 71
GMAT 1: 640 Q47 V31
Re: The recent drop in the prime interest rate probably results from the  [#permalink]

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04 Aug 2019, 20:27
Rajat4u wrote:
Bunuel wrote:
The recent drop in the prime interest rate probably results from the Federal Reserve Bank's tight money policy and its effect on lending institutions rather than to the drop in the overall rate of inflation

(A) its effect on lending institutions rather than to the drop in the overall
(B) its affect on lending institutions, as opposed to the drop in the overall
(C) it's effect on lending institutions, rather than from the drop in the overall
(D) its effect on lending institutions rather than from the drop in the overall
(E) the effect on lending institutions, rather than to the drop in the overall

Why "from the drop" and not "to the drop" ?

We are considering both Federal tight money and overall.... at the same level and are given same importance
It's like this, in the most miniscule terms.. Water is coming from tap A and not from tap B.

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Joined: 17 Jul 2018
Posts: 27
GMAT 1: 600 Q49 V22
GMAT 2: 700 Q50 V34
Re: The recent drop in the prime interest rate probably results from the  [#permalink]

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08 Aug 2019, 00:08
1
Need to understand the difference between 'it's effect" vs "its effect"
It will be really helpful if you can help me with a definite rule

I selected C here
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Re: The recent drop in the prime interest rate probably results from the  [#permalink]

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19 Nov 2019, 21:57
1
Kunal112 wrote:
Need to understand the difference between 'it's effect" vs "its effect"
It will be really helpful if you can help me with a definite rule

I selected C here

Hi Kunal112,

It's is a short form of " it is " and does not mean 'belongs to it' . This is an exception.
To mean something belonging to 'it' , we say "Its..." (without the apostrophe)

In the above question, "It's effect..." should be read as " it is effect..." which doesn't make sense.
"its effect ..." means the "effect of it" (possessive)

Other such examples you may have come across are :
"That's an easy question" ... actually means " That is an easy question"

Hope this helps
Intern
Joined: 07 Jun 2019
Posts: 3
Re: The recent drop in the prime interest rate probably results from the  [#permalink]

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30 Nov 2019, 13:49
1.According to parallelism
And this question is talking about the Federal Reserve Bank’s policy and effect. -----should be using its.
2. From the Federal Reserve Bank.........from the drop in the overall rate of inflation
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Re: The recent drop in the prime interest rate probably results from the   [#permalink] 30 Nov 2019, 13:49
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