It is currently 17 Dec 2017, 00:09

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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

The recent interest among credit card issuers in establishin

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

Hide Tags

6 KUDOS received
Manager
Manager
User avatar
Joined: 10 Feb 2014
Posts: 62

Kudos [?]: 78 [6], given: 25

GMAT ToolKit User
The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 25 Jun 2014, 13:31
6
This post received
KUDOS
12
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  75% (hard)

Question Stats:

54% (01:23) correct 46% (01:31) wrong based on 730 sessions

HideShow timer Statistics

The recent interest among credit card issuers in establishing credit card use in the province of Lijau is perplexing. Residents of Lijau save almost 40% of their discretionary income, a rate more than three times the national average, and most residents of Lijau are more likely to forgo a major purchase or borrow from relatives than to rely on an outside source of funds.

Which of the following, if true, would most support a prediction of success of the credit card issuers in establishing credit card use in the province of Lijau?

A. Lijau is the richest province in the country.
B. Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations.
C. Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.
D. Lijau’s wealthiest citizens use credit cards heavily during their trips abroad.
E. In the modern economy, credit cards are associated with both prestige and convenience.
[Reveal] Spoiler: OA

Kudos [?]: 78 [6], given: 25

4 KUDOS received
Director
Director
User avatar
Joined: 25 Apr 2012
Posts: 721

Kudos [?]: 874 [4], given: 724

Location: India
GPA: 3.21
WE: Business Development (Other)
Premium Member Reviews Badge
Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 25 Jun 2014, 20:16
4
This post received
KUDOS
1
This post was
BOOKMARKED
Game wrote:
The recent interest among credit card issuers in establishing credit card use in the province of Lijau is perplexing. Residents of Lijau save almost 40% of their discretionary income, a rate more than three times the national average, and most residents of Lijau are more likely to forgo a major purchase or borrow from relatives than to rely on an outside source of funds.

Which of the following, if true, would most support a prediction of success of the credit card issuers in establishing credit card use in the province of Lijau?

A. Lijau is the richest province in the country.
B. Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations.
C. Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.
D. Lijau’s wealthiest citizens use credit cards heavily during their trips abroad.
E. In the modern economy, credit cards are associated with both prestige and convenience.



This is a strengthen question and hence the options provided will bring some new information to make the success of the plan more believable

St A: Being richest province does not mean credit card company decision will lead to success.What if people don't like using credit cards at all and hence have no idea how a card works

St B: Lijau does not allow its residents to declare bankruptcy..Yes this information will be strengthener so we can hold this option and come back to it later

StC: So here Lijau is linked to other provinces and these province also had the same discretionary income or excess....Now this option indicates that credit card companies in the past achieved success and thus very like can expect same story in Lijau...Good option...Let's hold onto this

StD: We don't know how many wealthy citizens and hence we don't know if it will be a success because we still don't know what size of province popluation is reach. If this category forms 95% of the population then it can be a success but if it is 1% of the population then the plan may not be a success

St E, We don't know if the province is modern or not..

Now Option C gives you information that success was achieved in the past and how in the earlier provinces credit card companies achieved success and hence is more strengthening the Option B which says the current rule..What if the local govt changes the law in future or if the govt is already studying a proposal for allowing citizens to declare bankruptcy..We don't know...We will need more information for this option to be more strong strengthener
_________________


“If you can't fly then run, if you can't run then walk, if you can't walk then crawl, but whatever you do you have to keep moving forward.”

Kudos [?]: 874 [4], given: 724

Manager
Manager
avatar
Joined: 09 Apr 2013
Posts: 148

Kudos [?]: 125 [0], given: 24

Location: India
WE: Supply Chain Management (Consulting)
GMAT ToolKit User
Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 26 Jun 2014, 10:45
WoundedTiger wrote:
Game wrote:
The recent interest among credit card issuers in establishing credit card use in the province of Lijau is perplexing. Residents of Lijau save almost 40% of their discretionary income, a rate more than three times the national average, and most residents of Lijau are more likely to forgo a major purchase or borrow from relatives than to rely on an outside source of funds.

Which of the following, if true, would most support a prediction of success of the credit card issuers in establishing credit card use in the province of Lijau?

A. Lijau is the richest province in the country.
B. Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations.
C. Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.
D. Lijau’s wealthiest citizens use credit cards heavily during their trips abroad.
E. In the modern economy, credit cards are associated with both prestige and convenience.


This is a strengthen question and hence the options provided will bring some new information to make the success of the plan more believable

St A: Being richest province does not mean credit card company decision will lead to success.What if people don't like using credit cards at all and hence have no idea how a card works

St B: Lijau does not allow its residents to declare bankruptcy..Yes this information will be strengthener so we can hold this option and come back to it later

StC: So here Lijau is linked to other provinces and these province also had the same discretionary income or excess....Now this option indicates that credit card companies in the past achieved success and thus very like can expect same story in Lijau...Good option...Let's hold onto this

StD: We don't know how many wealthy citizens and hence we don't know if it will be a success because we still don't know what size of province popluation is reach. If this category forms 95% of the population then it can be a success but if it is 1% of the population then the plan may not be a success

St E, We don't know if the province is modern or not..

Now Option C gives you information that success was achieved in the past and how in the earlier provinces credit card companies achieved success and hence is more strengthening the Option B which says the current rule..What if the local govt changes the law in future or if the govt is already studying a proposal for allowing citizens to declare bankruptcy..We don't know...We will need more information for this option to be more strong strengthener



But where does the argument guarantee the past success of credit card usage in other provinces of the country?
_________________

+1 KUDOS is the best way to say thanks :-)

"Pay attention to every detail"

Kudos [?]: 125 [0], given: 24

3 KUDOS received
Manager
Manager
User avatar
Joined: 24 Oct 2013
Posts: 173

Kudos [?]: 49 [3], given: 83

Location: Canada
Schools: LBS '18
GMAT 1: 720 Q49 V38
WE: Design (Transportation)
GMAT ToolKit User Premium Member
The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 26 Jun 2014, 13:35
3
This post received
KUDOS
WoundedTiger wrote:
Game wrote:
The recent interest among credit card issuers in establishing credit card use in the province of Lijau is perplexing. Residents of Lijau save almost 40% of their discretionary income, a rate more than three times the national average, and most residents of Lijau are more likely to forgo a major purchase or borrow from relatives than to rely on an outside source of funds.

Which of the following, if true, would most support a prediction of success of the credit card issuers in establishing credit card use in the province of Lijau?

A. Lijau is the richest province in the country.
B. Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations.
C. Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.
D. Lijau’s wealthiest citizens use credit cards heavily during their trips abroad.
E. In the modern economy, credit cards are associated with both prestige and convenience.



This is a strengthen question and hence the options provided will bring some new information to make the success of the plan more believable

St A: Being richest province does not mean credit card company decision will lead to success.What if people don't like using credit cards at all and hence have no idea how a card works

St B: Lijau does not allow its residents to declare bankruptcy..Yes this information will be strengthener so we can hold this option and come back to it later

StC: So here Lijau is linked to other provinces and these province also had the same discretionary income or excess....Now this option indicates that credit card companies in the past achieved success and thus very like can expect same story in Lijau...Good option...Let's hold onto this

StD: We don't know how many wealthy citizens and hence we don't know if it will be a success because we still don't know what size of province popluation is reach. If this category forms 95% of the population then it can be a success but if it is 1% of the population then the plan may not be a success

St E, We don't know if the province is modern or not..

Now Option C gives you information that success was achieved in the past and how in the earlier provinces credit card companies achieved success and hence is more strengthening the Option B which says the current rule..What if the local govt changes the law in future or if the govt is already studying a proposal for allowing citizens to declare bankruptcy..We don't know...We will need more information for this option to be more strong strengthener


I think your logic associated with B is a little out of order (I just think so).

B. Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations.

This is a weakener and not a strengthener.

If Lijau does not allow its residents to declare bankruptcy to avoid debt obligations, that means even if you are BANKRUPT you would still have to pay the amount you owe to the bank. Which is very negative proposition. Whereas in other provinces if you can declare bankruptcy and AVOID DEBT OBLIGATION, then it is an incentive. So surely what B mentions, works against the plan.

Let me know about your thoughts on it!

Kudos [?]: 49 [3], given: 83

Director
Director
User avatar
Joined: 25 Apr 2012
Posts: 721

Kudos [?]: 874 [0], given: 724

Location: India
GPA: 3.21
WE: Business Development (Other)
Premium Member Reviews Badge
Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 26 Jun 2014, 22:02
cssk wrote:
WoundedTiger wrote:
Game wrote:
The recent interest among credit card issuers in establishing credit card use in the province of Lijau is perplexing. Residents of Lijau save almost 40% of their discretionary income, a rate more than three times the national average, and most residents of Lijau are more likely to forgo a major purchase or borrow from relatives than to rely on an outside source of funds.

Which of the following, if true, would most support a prediction of success of the credit card issuers in establishing credit card use in the province of Lijau?

A. Lijau is the richest province in the country.
B. Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations.
C. Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.
D. Lijau’s wealthiest citizens use credit cards heavily during their trips abroad.
E. In the modern economy, credit cards are associated with both prestige and convenience.


This is a strengthen question and hence the options provided will bring some new information to make the success of the plan more believable


St A: Being richest province does not mean credit card company decision will lead to success.What if people don't like using credit cards at all and hence have no idea how a card works

St B: Lijau does not allow its residents to declare bankruptcy..Yes this information will be strengthener so we can hold this option and come back to it later

StC: So here Lijau is linked to other provinces and these province also had the same discretionary income or excess....Now this option indicates that credit card companies in the past achieved success and thus very like can expect same story in Lijau...Good option...Let's hold onto this

StD: We don't know how many wealthy citizens and hence we don't know if it will be a success because we still don't know what size of province popluation is reach. If this category forms 95% of the population then it can be a success but if it is 1% of the population then the plan may not be a success

St E, We don't know if the province is modern or not..

Now Option C gives you information that success was achieved in the past and how in the earlier provinces credit card companies achieved success and hence is more strengthening the Option B which says the current rule..What if the local govt changes the law in future or if the govt is already studying a proposal for allowing citizens to declare bankruptcy..We don't know...We will need more information for this option to be more strong strengthener



But where does the argument guarantee the past success of credit card usage in other provinces of the country?



For strgenthen question it is not necessary for answer choice to guarantee the outcome or conclusion but the answer choice should make the conclusion more possible..C does just that....
_________________


“If you can't fly then run, if you can't run then walk, if you can't walk then crawl, but whatever you do you have to keep moving forward.”

Kudos [?]: 874 [0], given: 724

Director
Director
User avatar
Joined: 25 Apr 2012
Posts: 721

Kudos [?]: 874 [0], given: 724

Location: India
GPA: 3.21
WE: Business Development (Other)
Premium Member Reviews Badge
Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 26 Jun 2014, 22:09
gauravkaushik8591 wrote:
WoundedTiger wrote:
Game wrote:
The recent interest among credit card issuers in establishing credit card use in the province of Lijau is perplexing. Residents of Lijau save almost 40% of their discretionary income, a rate more than three times the national average, and most residents of Lijau are more likely to forgo a major purchase or borrow from relatives than to rely on an outside source of funds.

Which of the following, if true, would most support a prediction of success of the credit card issuers in establishing credit card use in the province of Lijau?

A. Lijau is the richest province in the country.
B. Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations.
C. Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.
D. Lijau’s wealthiest citizens use credit cards heavily during their trips abroad.
E. In the modern economy, credit cards are associated with both prestige and convenience.



This is a strengthen question and hence the options provided will bring some new information to make the success of the plan more believable

St A: Being richest province does not mean credit card company decision will lead to success.What if people don't like using credit cards at all and hence have no idea how a card works

St B: Lijau does not allow its residents to declare bankruptcy..Yes this information will be strengthener so we can hold this option and come back to it later

StC: So here Lijau is linked to other provinces and these province also had the same discretionary income or excess....Now this option indicates that credit card companies in the past achieved success and thus very like can expect same story in Lijau...Good option...Let's hold onto this

StD: We don't know how many wealthy citizens and hence we don't know if it will be a success because we still don't know what size of province popluation is reach. If this category forms 95% of the population then it can be a success but if it is 1% of the population then the plan may not be a success

St E, We don't know if the province is modern or not..

Now Option C gives you information that success was achieved in the past and how in the earlier provinces credit card companies achieved success and hence is more strengthening the Option B which says the current rule..What if the local govt changes the law in future or if the govt is already studying a proposal for allowing citizens to declare bankruptcy..We don't know...We will need more information for this option to be more strong strengthener


I think your logic associated with B is a little out of order (I just think so).

B. Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations.

This is a weakener and not a strengthener.

If Lijau does not allow its residents to declare bankruptcy to avoid debt obligations, that means even if you are BANKRUPT you would still have to pay the amount you owe to the bank. Which is very negative proposition. Whereas in other provinces if you can declare bankruptcy and AVOID DEBT OBLIGATION, then it is an incentive. So surely what B mentions, works against the plan.

Let me know about your thoughts on it!



Okay...Consider from the credit card company point of view...if the province does not allow you to declare bankruptcy and avoid debt obligations, in this case to credit card companies, then it is expected that credit card users will be careful in their usage of the card and try to avoid getting into a situation where they have to declare bankruptcy and still meet debt obligations...as a credit card company this should give you some confidence that chances of getting back dues on credit card much more possible...
Downside to the above chances is that people in that province will avoid getting a credit card because of this law. Why...Because people will like to avoid a new debt obligation in the form of credit card....so it can be a weakner...
_________________


“If you can't fly then run, if you can't run then walk, if you can't walk then crawl, but whatever you do you have to keep moving forward.”

Kudos [?]: 874 [0], given: 724

Manager
Manager
avatar
Joined: 09 Apr 2013
Posts: 148

Kudos [?]: 125 [0], given: 24

Location: India
WE: Supply Chain Management (Consulting)
GMAT ToolKit User
Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 27 Jun 2014, 02:10
Thank you guys. Following your discussion helped me clear my confusion.
_________________

+1 KUDOS is the best way to say thanks :-)

"Pay attention to every detail"

Kudos [?]: 125 [0], given: 24

Senior Manager
Senior Manager
avatar
Joined: 28 Apr 2014
Posts: 272

Kudos [?]: 40 [0], given: 46

GMAT ToolKit User
Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 30 Jun 2014, 01:03
Game wrote:
The recent interest among credit card issuers in establishing credit card use in the province of Lijau is perplexing. Residents of Lijau save almost 40% of their discretionary income, a rate more than three times the national average, and most residents of Lijau are more likely to forgo a major purchase or borrow from relatives than to rely on an outside source of funds.

Which of the following, if true, would most support a prediction of success of the credit card issuers in establishing credit card use in the province of Lijau?

A. Lijau is the richest province in the country.
B. Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations.
C. Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.
D. Lijau’s wealthiest citizens use credit cards heavily during their trips abroad.
E. In the modern economy, credit cards are associated with both prestige and convenience.


Baffling explanation.

As far as C is concerned , it does not support a prediction of success any more than d.

Weakness in C ---> Other provinces had same discretionary income saving prior to credit card establishment but it is quite possible that they are not so financially wise so as to postpone a major purchase or borrow from friends. Lijau residents have this behavioral trait as well , thereby making credit card redundant and not a success.

Weakness in D ---> Lijau wealthiest citizens use credit card so it implies that given a chance the residents might want to use it but it is possible that the shops and establishments are not supporting the infrastructure in Lijau.

Kudos [?]: 40 [0], given: 46

Current Student
avatar
Joined: 18 Jul 2014
Posts: 92

Kudos [?]: 23 [0], given: 5

Schools: Rotman '17 (A)
GMAT 1: 710 Q50 V38
Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 07 Oct 2014, 02:22
I second Himanshujovi.

I picked up the answer D.

My reasoning:

C: Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.
( okay, credit cards impact savings. But Lijau doesn't borrow from outside sources, they ask friends or postpone a purchase. Doesn't mean they'll use a credit card)

D: Lijau’s wealthiest citizens use credit cards heavily during their trips abroad.
( here's a reason why Lijau's citizen might want a credit card. They use it for their trips)

Kudos [?]: 23 [0], given: 5

Non-Human User
User avatar
Joined: 01 Oct 2013
Posts: 10208

Kudos [?]: 277 [0], given: 0

Premium Member
Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 21 Nov 2015, 12:52
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

Kudos [?]: 277 [0], given: 0

Intern
Intern
User avatar
Joined: 23 Dec 2015
Posts: 24

Kudos [?]: 5 [0], given: 146

Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 04 Mar 2016, 02:59
The recent interest among credit card issuers in establishing credit card use in the province of Lijau is perplexing. Residents of Lijau save almost 40% of their discretionary income, a rate more than three times the national average, and most residents of Lijau are more likely to forgo a major purchase or borrow from relatives than to rely on an outside source of funds.


Option C. Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.
Correct ,because it conveys that before introduction of credit cards, rest of the provinces had higher income savings than Lijau, but after introduction of credit cards pepole started spending rather than saving. So if introduced in Lijau, the people are going to spend more obviously through credit cards.

Kudos [?]: 5 [0], given: 146

Senior Manager
Senior Manager
avatar
S
Joined: 07 Sep 2014
Posts: 482

Kudos [?]: 40 [0], given: 342

Concentration: Finance, Marketing
Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 07 Aug 2016, 09:53
Game wrote:
The recent interest among credit card issuers in establishing credit card use in the province of Lijau is perplexing. Residents of Lijau save almost 40% of their discretionary income, a rate more than three times the national average, and most residents of Lijau are more likely to forgo a major purchase or borrow from relatives than to rely on an outside source of funds.

Which of the following, if true, would most support a prediction of success of the credit card issuers in establishing credit card use in the province of Lijau?

A. Lijau is the richest province in the country.
B. Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations.
C. Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.
D. Lijau’s wealthiest citizens use credit cards heavily during their trips abroad.
E. In the modern economy, credit cards are associated with both prestige and convenience.


I opted for C as it directly attack the assumption the saving rate reason provided by argument.

But consider this: we are relying on percentage factor 40% saving. what if 60% expenses by Lijau is more than other city's, lets say 80% expenses. in that case 40% saving doesn't matter.So with 100% incomer Lijau, credit card companies are good. A does exactly that. Lijau is the richest province in the country.

Also to me D also makes sense - Lijau’s wealthiest citizens use credit cards heavily during their trips abroad. but there are so many assumption but still it makes sense for credit card issuer to establish their setup if there is a demand.

Kudos [?]: 40 [0], given: 342

Current Student
User avatar
S
Joined: 28 Nov 2014
Posts: 918

Kudos [?]: 220 [0], given: 79

Concentration: Strategy
Schools: Fisher '19 (M)
GPA: 3.71
Reviews Badge
Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 30 Sep 2016, 07:02
VeritasPrepKarishma
Can you please throw light on option C. Where in the argument are we given the hint that other provinces habit are similar to Lijau? Even if we are looking for a weakener, I believe relevant outside information will add to the case. However, I don't see anything common in between Lijau and other provinces. Just that they are the part of the same country. Please if you can share your opinion.
Many thanks in advance.

Kudos [?]: 220 [0], given: 79

1 KUDOS received
Board of Directors
User avatar
G
Status: QA & VA Forum Moderator
Joined: 11 Jun 2011
Posts: 3115

Kudos [?]: 1150 [1], given: 327

Location: India
GPA: 3.5
WE: Business Development (Commercial Banking)
GMAT ToolKit User Premium Member
Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 30 Sep 2016, 10:05
1
This post received
KUDOS
Keats wrote:
VeritasPrepKarishma
Can you please throw light on option C. Where in the argument are we given the hint that other provinces habit are similar to Lijau? Even if we are looking for a weakener, I believe relevant outside information will add to the case. However, I don't see anything common in between Lijau and other provinces. Just that they are the part of the same country. Please if you can share your opinion.
Many thanks in advance.


The issue here is the difference between possessing a Credit Card ( Without Actually using it ) and Purchasing Goods/Services using Credit Card ( Actual Usage )

Quote:
C. Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau.


(C) states that before credit card usage in rest of the country’s provinces had similar condition as that of Lijau; however after widespread usage of credit card in other provinces their average discretionary income usage changed. This means that other provinces started using Credit Cards more , i.e, people in other provinces started purchases on credit more than they would have , borrowing money from others...

A similar trend may be observed in Lijau, thus (C) is correct...
_________________

Thanks and Regards

Abhishek....

PLEASE FOLLOW THE RULES FOR POSTING IN QA AND VA FORUM AND USE SEARCH FUNCTION BEFORE POSTING NEW QUESTIONS

How to use Search Function in GMAT Club | Rules for Posting in QA forum | Writing Mathematical Formulas |Rules for Posting in VA forum | Request Expert's Reply ( VA Forum Only )

Kudos [?]: 1150 [1], given: 327

Senior Manager
Senior Manager
User avatar
B
Status: DONE!
Joined: 05 Sep 2016
Posts: 408

Kudos [?]: 26 [0], given: 283

Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 24 Nov 2016, 19:46
A. Lijau is the richest province in the country. --> irrelevant
B. Unlike the country’s other provinces, Lijau does not allow its residents to declare bankruptcy to avoid debt obligations. --> in the prompt it tells us that people would forgo expensive items and borrow from relatives...so they wouldn't face the issue of debt.
C. Before credit card use was established in the rest of the country’s provinces, those provinces had a rate of discretionary income saving equal to or in excess of the rate currently found in Lijau. --> by POE, correct
D. Lijau’s wealthiest citizens use credit cards heavily during their trips abroad. --> we don't know what percent of the population is wealthy; eliminate
E. In the modern economy, credit cards are associated with both prestige and convenience. --> irrelevant; the people would have a credit card if they were concerned with the prestige and convenience it conveys

Kudos [?]: 26 [0], given: 283

Chat Moderator
avatar
P
Joined: 04 Aug 2016
Posts: 592

Kudos [?]: 100 [0], given: 140

Location: India
Concentration: Leadership, Strategy
GPA: 4
WE: Engineering (Telecommunications)
Premium Member CAT Tests
Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 02 Sep 2017, 01:51
Though C is the best choice among all the available options, I don't see how the plan could be successful as ---> in C, we did address the income (savings) part but how can we ascertain that the residents of L will actually go ahead and buy these cards since we have from the stimulus that - "most residents of Lijau are more likely to forgo a major purchase or borrow from relatives than to rely on an outside source of funds."

We don't know about the preferences about the residents in other county to make that leap.

Kudos [?]: 100 [0], given: 140

Manager
Manager
avatar
B
Joined: 11 Jun 2016
Posts: 64

Kudos [?]: 8 [0], given: 92

GMAT 1: 680 Q49 V35
GMAT 2: 690 Q49 V34
CAT Tests
Re: The recent interest among credit card issuers in establishin [#permalink]

Show Tags

New post 07 Oct 2017, 04:12
@gmatninja, @gmatninja2, Experts,

Please help me understand if my understanding regarding why option B is incorrect is correct.

As per my understanding, if Lijau doesnt allow its residents to declare bankruptcy to avoid debt obligations, the residents would be more inclined to borrow from relatives rather than use credit card ( Rely on an outside source of funds )

Kudos [?]: 8 [0], given: 92

Re: The recent interest among credit card issuers in establishin   [#permalink] 07 Oct 2017, 04:12
Display posts from previous: Sort by

The recent interest among credit card issuers in establishin

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


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

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

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.