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# The recent interest among credit card issuers in establishing credit

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The recent interest among credit card issuers in establishing credit  [#permalink]

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25 Jun 2014, 14:31
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55% (02:00) correct 45% (02:17) wrong based on 1174 sessions

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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.

Solution: C

Start by identifying the conclusion, which is elusive in this question: this is one of those Strengthen questions with a P word (“prediction”) in the stem, so the conclusion is actually hidden in the stem rather than the stimulus: “The credit card issuers may successfully establish credit card use in Lijau.”

Our argument told us that credit cards were unlikely to succeed in Lijau because of the high rate of savings, so we need some premise that attacks that, making (C) the best answer: if the other provinces now in the grip of the credit card companies once had a high rate of savings too, there is at least a chance that Lijau will follow their example.
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The recent interest among credit card issuers in establishing credit  [#permalink]

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17 Jan 2019, 08:25
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.

Solution: C

Start by identifying the conclusion, which is elusive in this question: this is one of those Strengthen questions with a P word (“prediction”) in the stem, so the conclusion is actually hidden in the stem rather than the stimulus: “The credit card issuers may successfully establish credit card use in Lijau.”

Our argument told us that credit cards were unlikely to succeed in Lijau because of the high rate of savings, so we need some premise that attacks that, making (C) the best answer: if the other provinces now in the grip of the credit card companies once had a high rate of savings too, there is at least a chance that Lijau will follow their example.

Our argument told us that credit cards were unlikely to succeed in Lijau because of the high rate of savings, so we need some premise that attacks that, making (C) the best answer: if the other provinces now in the grip of the credit card companies once had a high rate of savings too, there is at least a chance that Lijau will follow their example.

Residents of Lijau save almost 40% of their discretionary income, a rate more than three times the national average.
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.
Then it's odd that credit card companies are trying to establish themselves here.

What would support the success of credit card? The argument has given two reasons why the credit card is likely to fail. We need to say why that may not be the case.

(A) Lijau is the richest province in the country.

We don't know how that affects credit card success.

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

This is one reason why cards may not become popular. If bankruptcy can be declared, then taking credit becomes more attractive.

(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.

This is relevant. One reason given that credit cards may fail is that Lijau has high saving rate. This tells us that others with even higher previous saving rates have high credit card use. So in itself, the first reason given becomes weak invalid. The first reason does not need any other condition to be met. The reason is simply "high saving rate". This tells us that "high saving rate" may not be a valid reason. Hence this supports the success of credit card. Note that it does not establish the success. It just supports. Let's see remaining options.

(D) Lijau’s wealthiest citizens use credit cards heavily during their trips abroad.
The credit card companies are trying to establish the credit card industry. This talks about whatever is already prevalent in Lijau. So it doesn't tell us what to expect in future.

(E) In the modern economy, credit cards are associated with both prestige and convenience.
These are the pros of credit cards. How they will impact people of Lijau, we do not know. Hence it doesn't tip the scale in favour of credit cards.

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

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25 Jun 2014, 21:16
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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
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Re: The recent interest among credit card issuers in establishing credit  [#permalink]

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26 Jun 2014, 11:45
1
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?
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Re: The recent interest among credit card issuers in establishing credit  [#permalink]

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26 Jun 2014, 14:35
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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.

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

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26 Jun 2014, 23:02
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....
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Re: The recent interest among credit card issuers in establishing credit  [#permalink]

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26 Jun 2014, 23:09
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.

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

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27 Jun 2014, 03:10
Thank you guys. Following your discussion helped me clear my confusion.
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Re: The recent interest among credit card issuers in establishing credit  [#permalink]

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30 Jun 2014, 02:03
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.
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Re: The recent interest among credit card issuers in establishing credit  [#permalink]

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07 Oct 2014, 03:22
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)
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Re: The recent interest among credit card issuers in establishing credit  [#permalink]

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04 Mar 2016, 03:59
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.
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Re: The recent interest among credit card issuers in establishing credit  [#permalink]

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07 Aug 2016, 10:53
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.
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Re: The recent interest among credit card issuers in establishing credit  [#permalink]

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30 Sep 2016, 08:02
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.
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Re: The recent interest among credit card issuers in establishing credit  [#permalink]

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30 Sep 2016, 11:05
1
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.

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

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24 Nov 2016, 20:46
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
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Re: The recent interest among credit card issuers in establishing credit  [#permalink]

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02 Sep 2017, 02:51
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.
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Re: The recent interest among credit card issuers in establishing credit  [#permalink]

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07 Oct 2017, 05:12
@gmatninja, @gmatninja2, Experts,

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

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07 Feb 2018, 11:00
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.

none of the answers make sense. poorly crafted options!
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Re: The recent interest among credit card issuers in establishing credit  [#permalink]

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13 Feb 2018, 02:24
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.

Gmat never encourages an option that is based on past/similar trend/result obtained in some other element, rather than the targeted one.

The logic in C is mostly used as incorrect option in most official questions. It's a poor question IMO.
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Re: The recent interest among credit card issuers in establishing credit  [#permalink]

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19 Feb 2018, 10:31
TaN1213 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 similar to official guide question. And the answer is indeed C. Because if other provinces who have now no less savings after the credit card use was established. It means that people are using the credit card, directly supporting the plan in Lijau
Re: The recent interest among credit card issuers in establishing credit   [#permalink] 19 Feb 2018, 10:31
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