Last visit was: 21 Apr 2026, 15:23 It is currently 21 Apr 2026, 15:23
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
User avatar
RudeyboyZ
Joined: 07 Feb 2015
Last visit: 10 Sep 2019
Posts: 25
Own Kudos:
201
 [69]
Given Kudos: 18
Status:Online
Location: India
Rudey: RD
Concentration: Marketing, General Management
GMAT 1: 620 Q45 V31
GMAT 2: 640 Q46 V31
GPA: 3.29
WE:Sales (Hospitality and Tourism)
GMAT 2: 640 Q46 V31
Posts: 25
Kudos: 201
 [69]
6
Kudos
Add Kudos
63
Bookmarks
Bookmark this Post
Most Helpful Reply
User avatar
samusa
Joined: 01 Nov 2013
Last visit: 30 Nov 2025
Posts: 240
Own Kudos:
1,067
 [31]
Given Kudos: 410
GMAT 1: 690 Q45 V39
WE:General Management (Energy)
Products:
GMAT 1: 690 Q45 V39
Posts: 240
Kudos: 1,067
 [31]
26
Kudos
Add Kudos
5
Bookmarks
Bookmark this Post
User avatar
chetan2u
User avatar
GMAT Expert
Joined: 02 Aug 2009
Last visit: 18 Apr 2026
Posts: 11,230
Own Kudos:
44,984
 [7]
Given Kudos: 335
Status:Math and DI Expert
Location: India
Concentration: Human Resources, General Management
GMAT Focus 1: 735 Q90 V89 DI81
Products:
Expert
Expert reply
GMAT Focus 1: 735 Q90 V89 DI81
Posts: 11,230
Kudos: 44,984
 [7]
6
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
General Discussion
User avatar
GMATDemiGod
Joined: 23 Sep 2015
Last visit: 05 Feb 2017
Posts: 64
Own Kudos:
52
 [1]
Given Kudos: 213
Concentration: General Management, Finance
GMAT 1: 680 Q46 V38
GMAT 2: 690 Q47 V38
GPA: 3.5
GMAT 2: 690 Q47 V38
Posts: 64
Kudos: 52
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
The true danger in the central bank’s efforts to stimulate the economy is not that its actions will

having trouble in this question. I see its here, and not sure how then we can use they in the second part. Also hard to tell they are referring to different things.
User avatar
Abhishek009
User avatar
Board of Directors
Joined: 11 Jun 2011
Last visit: 17 Dec 2025
Posts: 5,904
Own Kudos:
5,447
 [1]
Given Kudos: 463
Status:QA & VA Forum Moderator
Location: India
GPA: 3.5
WE:Business Development (Commercial Banking)
Posts: 5,904
Kudos: 5,447
 [1]
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
GMATDemiGod
The true danger in the central bank’s efforts to stimulate the economy is not that its actions will

having trouble in this question. I see its here, and not sure how then we can use they in the second part. Also hard to tell they are referring to different things.

RudeyboyZ
The true danger in the central bank’s efforts to stimulate the economy is not that its actions will result in inflation– of which there is little evidence – but that it will fail to revive the economy by any substantial measure, straining investor confidence and, in the process, the financial markets.

Its refer to central bank

Correct idiomatic usage is : Not X but Y

actions is plural so it will require a plural Verb , only (C) and (E) have plural pronnoun " They "

However in (E) we have the following issues -

Quote:
result in inflation – of which there is little evidence – but that they will fail to revive the economy by any substantial measure and strain investor confidence, which will in the process strain the financial markets

So, among (C) and (E) , (C) looks good !!

samichange has provided us with a detailed explanation, however we will be more than happy to provide further explaination.

Plz feel free to revert in case of ay doubt !! :-D
avatar
rukna
Joined: 11 Feb 2015
Last visit: 10 Apr 2017
Posts: 66
Own Kudos:
Given Kudos: 70
GMAT 1: 710 Q48 V38
GMAT 1: 710 Q48 V38
Posts: 66
Kudos: 127
Kudos
Add Kudos
Bookmarks
Bookmark this Post
How can first its in non underlined portion refer to Central Bank (its in possessive form). ?
User avatar
Abhishek009
User avatar
Board of Directors
Joined: 11 Jun 2011
Last visit: 17 Dec 2025
Posts: 5,904
Own Kudos:
Given Kudos: 463
Status:QA & VA Forum Moderator
Location: India
GPA: 3.5
WE:Business Development (Commercial Banking)
Posts: 5,904
Kudos: 5,447
Kudos
Add Kudos
Bookmarks
Bookmark this Post
rukna
How can first its in non underlined portion refer to Central Bank (its in possessive form). ?

There is no problem with the use of Its when it is referring to a singular antecedent.

Here in this case its is clearly referring to the central bank.
User avatar
tarunk31
Joined: 25 Feb 2014
Last visit: 20 Jul 2022
Posts: 180
Own Kudos:
463
 [1]
Given Kudos: 147
GMAT 1: 720 Q50 V38
Products:
GMAT 1: 720 Q50 V38
Posts: 180
Kudos: 463
 [1]
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
The true danger in the central bank’s efforts to stimulate the economy is not that its actions will ...

Here possessive pronoun 'its' is referring to possessive noun central bank’s. Possessive nouns can refer to possessive as well as non-possessive ones(subject or object pronouns). The only rule that should be remembered is that possessive nouns cannot be the antecedent of a non-possessive pronoun. For ex. following sentence is wrong:

Central bank’s efforts to stimulate the economy are not enough as it is not taking into account all the stakeholders in the economy.

Here it(subject or personal pronoun) should have referred to noun Central Bank and not possessive pronoun Central Bank's.
avatar
rukna
Joined: 11 Feb 2015
Last visit: 10 Apr 2017
Posts: 66
Own Kudos:
Given Kudos: 70
GMAT 1: 710 Q48 V38
GMAT 1: 710 Q48 V38
Posts: 66
Kudos: 127
Kudos
Add Kudos
Bookmarks
Bookmark this Post
chetan2u
rukna
How can first its in non underlined portion refer to Central Bank (its in possessive form). ?

hi rukna,

Its is not refering to cental bank but central bank's

take it this way..

its - possessive form...
without possessive - IT

central bank's - possessive form
without possessive- central bank..

Thanks all. I did a similar MGMAT CAT question on similar concept. They said its unlikely this concept will be tested on actual gmat but I think they did.

Got the concept now. :)
User avatar
Helium
Joined: 08 Jun 2013
Last visit: 01 Jun 2020
Posts: 452
Own Kudos:
822
 [1]
Given Kudos: 118
Location: France
GMAT 1: 200 Q1 V1
GPA: 3.82
WE:Consulting (Other)
GMAT 1: 200 Q1 V1
Posts: 452
Kudos: 822
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Note the all-important pronoun decision point here – “it” in A, B, and D and “they” in C and E. Because the actions are what will either succeed or fail in reviving the economy, and because of the parallel structure “not that its actions will ____ but that they will_____”, the correct pronoun must be “they”. And choices B, D, and E make another subtle but significant error – by using the present tense “…and strain,” these sentences make “strain” parallel to “revive.” This means that the sentence reads “(the actions) will fail to revive and (fail to) strain,” which is illogical, as the success of the actions is to do only one of those things (revive) and its failure to do so will cause the strain. To say that it would fail to do both verbs, revive and strain, is illogical as the two actions are essentially opposite. Only choice C, which uses the proper pronoun “they” and the proper verb usage “straining” (as a modifier) logically conveys the meaning of the sentence, so choice C is correct.
User avatar
dcummins
Joined: 14 Feb 2017
Last visit: 16 Mar 2026
Posts: 1,021
Own Kudos:
Given Kudos: 368
Location: Australia
Concentration: Technology, Strategy
GMAT 1: 560 Q41 V26
GMAT 2: 550 Q43 V23
GMAT 3: 650 Q47 V33
GMAT 4: 650 Q44 V36
GMAT 5: 600 Q38 V35
GMAT 6: 710 Q47 V41
WE:Management Consulting (Consulting)
Products:
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Not sure I agree with this question at all.

By the same logic that users above have eliminated A, they could have eliminated C. In fact it makes less sense to me to use "they" for a possessive collective noun.
User avatar
siaguirr
Joined: 17 Oct 2016
Last visit: 10 Jun 2020
Posts: 7
Own Kudos:
Given Kudos: 81
Location: Chile
Concentration: Strategy, General Management
GMAT 1: 580 Q48 V27
GPA: 3.2
GMAT 1: 580 Q48 V27
Posts: 7
Kudos: 6
Kudos
Add Kudos
Bookmarks
Bookmark this Post
dcummins
Not sure I agree with this question at all.

By the same logic that users above have eliminated A, they could have eliminated C. In fact it makes less sense to me to use "they" for a possessive collective noun.

They is reffering to "its actions" no to the efforts.
User avatar
DmitryFarberMPrep
User avatar
Manhattan Prep Instructor
Joined: 22 Mar 2011
Last visit: 03 Mar 2026
Posts: 3,005
Own Kudos:
8,624
 [1]
Given Kudos: 57
Expert
Expert reply
GMAT Focus 1: 745 Q86 V90 DI85
Posts: 3,005
Kudos: 8,624
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
We definitely have to cut things down to C or E. "They" refers to actions, and we definitely need a plural pronoun for that. It doesn't work to say that "it" (the bank) will fail to revive the economy when we are specifically criticizing the plans. E is out for the modifier issue mentioned above. It also demonstrates false parallelism by making "fail" and "strain" parallel, when the latter is the result of the former.

However, there is a problem with all five answers. They all say that there is little evidence of inflation, but this doesn't make sense, since inflation is something people are predicting will happen, not something that is supposed to have happened already. We should be saying that there is little evidence that the actions will result in inflation. We could do that with a modifier along the lines of "an assertion for which there is little evidence."
User avatar
kaladin123
User avatar
Current Student
Joined: 06 Jul 2019
Last visit: 10 Jul 2022
Posts: 135
Own Kudos:
Given Kudos: 747
Location: India
Concentration: General Management, Strategy
GMAT 1: 640 Q39 V39
GMAT 2: 700 Q48 V38 (Online)
GPA: 3.11
WE:Project Management (Computer Software)
Products:
GMAT 2: 700 Q48 V38 (Online)
Posts: 135
Kudos: 68
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Once the choices with pronoun errors are eliminated, we are left with C & E. Of the two, C seems better worded.
Quote:

The true danger in the central bank’s efforts to stimulate the economy is not that its actions will result in inflation—of which there is little evidence—but that it will fail to revive the economy by any substantial measure, straining investor confidence and, in the process, the financial markets.

(A) result in inflation—of which there is little evidence—but that it will fail to revive the economy by any substantial measure, straining investor confidence and, in the process, the financial markets
Incorrect because of pronoun error

(B) result in inflation—of which there is little evidence—but that it will fail to revive the economy by any substantial measure and strain investor confidence, and in the process the financial markets
Incorrect because of pronoun error

(C) result in inflation—of which there is little evidence—but that they will fail to revive the economy by any substantial measure, straining investor confidence and, in the process, the financial markets
Correct answer choice

(D) have the result of inflation—of which there is little evidence—but also that it will fail to revive the economy by any substantial measure and strain investor confidence and, in the process, the financial markets
Incorrect because of pronoun error

(E) result in inflation—of which there is little evidence—but that they will fail to revive the economy by any substantial measure and strain investor confidence, which will in the process strain the financial markets
C seems better worded.
User avatar
gvij2017
Joined: 09 Aug 2017
Last visit: 18 Jun 2024
Posts: 664
Own Kudos:
Given Kudos: 778
Posts: 664
Kudos: 508
Kudos
Add Kudos
Bookmarks
Bookmark this Post
After reading complete thread, my opinion to this problem is that
Though it is incorrect to use non-possessive pronoun for possessive antecedent, we can use non-possessive pronoun for possessive pronoun if meaning is clear and there is no ambiguity. Suppose in "it will fail to revive..."
Central bank will fail to revive...Not the intended meaning.
Central bank's actions will fail to revive... Correct as we place pronoun according to logical antecedent which is currently residing in parallel phrase.
Central bank's efforts will fail to revive...ambiguous.

Here we are using idiom Not X but Y. So subject pronoun in Y must be according to logical antecedent in X.
User avatar
aniket16c
User avatar
Current Student
Joined: 20 Oct 2018
Last visit: 04 Jan 2026
Posts: 176
Own Kudos:
Given Kudos: 57
Location: India
GMAT 1: 690 Q49 V34
GMAT 2: 740 Q50 V40
GPA: 4
GMAT 2: 740 Q50 V40
Posts: 176
Kudos: 158
Kudos
Add Kudos
Bookmarks
Bookmark this Post
RudeyboyZ
The true danger in the central bank’s efforts to stimulate the economy is not that its actions will result in inflation—of which there is little evidence—but that it will fail to revive the economy by any substantial measure, straining investor confidence and, in the process, the financial markets.

Meaning: The main effect of the efforts of stimulating the economy is - the efforts will fail to revive the economy. This failure will strain investor confidence. The straining will in turn strain the financial markets.

(A) result in inflation—of which there is little evidence—but that it will fail to revive the economy by any substantial measure, straining investor confidence and, in the process, the financial markets
- "it" refers to "efforts" - Subject- pronoun error.
- "straining" presents the result of failure to revive the economy. The doer "efforts" is same for "failure" and "straining" - Use of "verb-ing" is correct
- Wrong

(B) result in inflation—of which there is little evidence—but that it will fail to revive the economy by any substantial measure and strain investor confidence, and in the process the financial markets
- Repeats the "it" error
- Meaning error - because of the use of connector "and" the sentence now conveys the meaning - the efforts will not fail to revive the economy and fail to strain investor confidence
- Wrong

(C) result in inflation—of which there is little evidence—but that they will fail to revive the economy by any substantial measure, straining investor confidence and, in the process, the financial markets
- "they" correctly refers to "efforts"
- Use of "straining" is correct
- Correct

(D) have the result of inflation—of which there is little evidence—but also that it will fail to revive the economy by any substantial measure and strain investor confidence and, in the process, the financial markets
- Incorrect use of "it"
- Meaning error because of the use of "and"
- Wrong

(E) result in inflation—of which there is little evidence—but that they will fail to revive the economy by any substantial measure and strain investor confidence, which will in the process strain the financial markets
- While this option correctly uses the pronoun "they" instead of "it", the sentence changes the meaning of the sentence by using "and" instead of the"verb-ing" modifier.
- Wrong
User avatar
ExpertsGlobal5
User avatar
Experts' Global Representative
Joined: 10 Jul 2017
Last visit: 21 Apr 2026
Posts: 6,216
Own Kudos:
6,163
 [1]
Given Kudos: 44
Location: India
GMAT Date: 11-01-2019
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 6,216
Kudos: 6,163
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Dear Friends,

Here is a detailed explanation to this question-

RudeyboyZ
The true danger in the central bank’s efforts to stimulate the economy is not that its actions will result in inflation—of which there is little evidence—but that it will fail to revive the economy by any substantial measure, straining investor confidence and, in the process, the financial markets.

(A) result in inflation—of which there is little evidence—but that it will fail to revive the economy by any substantial measure, straining investor confidence and, in the process, the financial markets

(B) result in inflation—of which there is little evidence—but that it will fail to revive the economy by any substantial measure and strain investor confidence, and in the process the financial markets

(C) result in inflation—of which there is little evidence—but that they will fail to revive the economy by any substantial measure, straining investor confidence and, in the process, the financial markets

(D) have the result of inflation—of which there is little evidence—but also that it will fail to revive the economy by any substantial measure and strain investor confidence and, in the process, the financial markets

(E) result in inflation—of which there is little evidence—but that they will fail to revive the economy by any substantial measure and strain investor confidence, which will in the process strain the financial markets

Choice A: This answer choice incorrectly uses the singular pronoun "it" to refer to the plural noun "efforts". Thus, this answer choice is incorrect.

Choice B: This answer choice repeats the subject-verb disagreement found in Option A. Additionally, this answer choice suffers from a meaning error; due to the use of the conjunction "and" in the phrase "fail to revive the economy by any substantial measure and strain investor confidence", this answer choice implies that the central bank's efforts will fail to accomplish two goals - reviving the economy and straining investor confidence. Thus, this answer choice is incorrect.

Choice C: This answer choice conveys the intended meaning of the sentence and maintains subject-verb agreement. Thus, this answer choice is correct.

Choice D: This answer choice repeats the errors found in Option B. Furthermore, the phrase "have the result of inflation" is needlessly wordy and renders this answer choice awkward. Thus, this answer choice is incorrect.

Choice E: This answer choice repeats the error related to the use of "and", found in Options B and D. Thus, this answer choice is incorrect.

Hence, C is the best answer choice.

All the best!
Experts' Global Team
User avatar
Basshead
Joined: 09 Jan 2020
Last visit: 07 Feb 2024
Posts: 907
Own Kudos:
Given Kudos: 431
Location: United States
Posts: 907
Kudos: 323
Kudos
Add Kudos
Bookmarks
Bookmark this Post
The true danger in the central bank’s efforts to stimulate the economy is not that its actions will result in inflation—of which there is little evidence—but that it will fail to revive the economy by any substantial measure, straining investor confidence and, in the process, the financial markets.

(A) result in inflation—of which there is little evidence—but that it will fail to revive the economy by any substantial measure, straining investor confidence and, in the process, the financial markets

-- SV agreement error. We need 'they' instead of 'it' to refer to actions.

(B) result in inflation—of which there is little evidence—but that it will fail to revive the economy by any substantial measure and strain investor confidence, and in the process the financial markets

-- SV agreement error. We need 'they' instead of 'it' to refer to actions.

(C) result in inflation—of which there is little evidence—but that they will fail to revive the economy by any substantial measure, straining investor confidence and, in the process, the financial markets

-- Looks good. Keep.

(D) have the result of inflation—of which there is little evidence—but also that it will fail to revive the economy by any substantial measure and strain investor confidence and, in the process, the financial markets

-- SV agreement error. We need 'they' instead of 'it' to refer to actions.

(E) result in inflation—of which there is little evidence—but that they will fail to revive the economy by any substantial measure and strain investor confidence, which will in the process strain the financial markets

-- Parallelism error. This sentence says that the economy will 'fail to strain investor confidence', which is non-sensical.

Answer is C.
User avatar
sid0791
Joined: 09 Aug 2020
Last visit: 28 Feb 2024
Posts: 81
Own Kudos:
Given Kudos: 16
Posts: 81
Kudos: 19
Kudos
Add Kudos
Bookmarks
Bookmark this Post
"It" correctly refers to the central bank. But the central bank cannot revive the economy. It's their efforts that revive the economy. Thus for "efforts", we have to use "they".

egmat, your take?
User avatar
MBAB123
Joined: 05 Jul 2020
Last visit: 30 Jul 2023
Posts: 529
Own Kudos:
319
 [1]
Given Kudos: 150
GMAT 1: 720 Q49 V38
WE:Accounting (Accounting)
Products:
GMAT 1: 720 Q49 V38
Posts: 529
Kudos: 319
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
sid0791
"It" correctly refers to the central bank. But the central bank cannot revive the economy. It's their efforts that revive the economy. Thus for "efforts", we have to use "they".

egmat, your take?

Not an expert here, but "they" actually refers to "actions" here as the sentence describes what the actions are doing and not the efforts. I agree that we would use "they" for both, actions and efforts.
 1   2   
Moderators:
GMAT Club Verbal Expert
7391 posts
495 posts
358 posts