Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 1912:30 PM EST
-01:30 PM EST
Learn how Keshav, a Chartered Accountant, scored an impressive 705 on GMAT in just 30 days with GMATWhiz's expert guidance. In this video, he shares preparation tips and strategies that worked for him, including the mock, time management, and more
Nov 2007:30 AM PST
-08:30 AM PST
Learn what truly sets the UC Riverside MBA apart and how it helps in your professional growth
Nov 2001:30 PM EST
-02:30 PM IST
Learn how Kamakshi achieved a GMAT 675 with an impressive 96th %ile in Data Insights. Discover the unique methods and exam strategies that helped her excel in DI along with other sections for a balanced and high score.
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2407:00 PM PST
-08:00 PM PST
Full-length FE mock with insightful analytics, weakness diagnosis, and video explanations!
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
Updated on: 30 Jun 2018, 04:13
Originally posted by mohnish104 on 13 Nov 2013, 00:22.
Last edited by Kurtosis on 30 Jun 2018, 04:13, edited 1 time in total.
Last edited by Kurtosis on 30 Jun 2018, 04:13, edited 1 time in total.
Removed the poll as difficulty level gets adjusted automatically
Kudos
Bookmarks
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
90% (01:25) correct
10%
(01:46)
wrong
based on 1954
sessions
History
Date
Time
Result
Not Attempted Yet
Which of the following most logically completes the argument below?
When interest rates are high, insurance companies reduce the premiums they charge for many kinds of insurance policies. The reason is that insurance companies want to take in as much money as possible in premiums so that they can invest the money at high rates of interest. And premium reductions help achieve this objective, since __________.
(A) interest rates are likely to decrease when large amounts of money are available for loans
(B) smaller insurance companies are not able to amass enough money to take advantage of investing at high interest rates
(C) insurance companies can sell many more insurance policies if they charge lower premiums than they would if they left premiums unchanged
(D) an increase in the number of policies sold eventually leads to an increase in the number of claims that an insurance company has to pay
(E) the number of claims that insurance companies pay increases at a higher rate than does the number of policies that the insurance companies can sell at the lower premiums
When interest rates are high, insurance companies reduce the premiums they charge for many kinds of insurance policies. The reason is that insurance companies want to take in as much money as possible in premiums so that they can invest the money at high rates of interest. And premium reductions help achieve this objective, since __________.
(A) interest rates are likely to decrease when large amounts of money are available for loans
(B) smaller insurance companies are not able to amass enough money to take advantage of investing at high interest rates
(C) insurance companies can sell many more insurance policies if they charge lower premiums than they would if they left premiums unchanged
(D) an increase in the number of policies sold eventually leads to an increase in the number of claims that an insurance company has to pay
(E) the number of claims that insurance companies pay increases at a higher rate than does the number of policies that the insurance companies can sell at the lower premiums
13 Nov 2013, 01:57
Kudos
Bookmarks
Because of "since", we need an assumption to complete the argument.
Which of the following most logically completes the argument below?
Fact: interest rates are high, insurance companies reduce the premiums they charge for many kinds of insurance policies.
Reason: insurance companies want to take in as much money as possible in premiums so that they can invest the money at high rates of interest.
Conclusion: Premium reductions help achieve this objective (take in as much money as possible), since __________.
How to take in as much money as possible --> insurance companies need to SELL as many insurance contracts as possible. <-- the assumption we need.
(A) interest rates are likely to decrease when large amounts of money are available for loans
Wrong. Nothing about interest rates decrease --> Not relevant.
(B) smaller insurance companies are not able to amass enough money to take advantage of investing at high interest rates
Wrong. Nothing about smaller/bigger companies --> Not relevant.
(C) insurance companies can sell many more insurance policies if they charge lower premiums than they would if they left premiums unchanged
Correct. C means, the more insurance policies sold, the more money took in.
(D) an increase in the number of policies sold eventually leads to an increase in the number of claims that an insurance company has to pay
Wrong. Nothing about claims --> Not relevant.
(E) the number of claims that insurance companies pay increases at a higher rate than does the number of policies that the insurance companies can sell at the lower premiums
Wrong. Nothing about claims --> Not relevant.
Hope it helps.
Which of the following most logically completes the argument below?
Fact: interest rates are high, insurance companies reduce the premiums they charge for many kinds of insurance policies.
Reason: insurance companies want to take in as much money as possible in premiums so that they can invest the money at high rates of interest.
Conclusion: Premium reductions help achieve this objective (take in as much money as possible), since __________.
How to take in as much money as possible --> insurance companies need to SELL as many insurance contracts as possible. <-- the assumption we need.
(A) interest rates are likely to decrease when large amounts of money are available for loans
Wrong. Nothing about interest rates decrease --> Not relevant.
(B) smaller insurance companies are not able to amass enough money to take advantage of investing at high interest rates
Wrong. Nothing about smaller/bigger companies --> Not relevant.
(C) insurance companies can sell many more insurance policies if they charge lower premiums than they would if they left premiums unchanged
Correct. C means, the more insurance policies sold, the more money took in.
(D) an increase in the number of policies sold eventually leads to an increase in the number of claims that an insurance company has to pay
Wrong. Nothing about claims --> Not relevant.
(E) the number of claims that insurance companies pay increases at a higher rate than does the number of policies that the insurance companies can sell at the lower premiums
Wrong. Nothing about claims --> Not relevant.
Hope it helps.
General Discussion
30 Nov 2014, 19:49
Kudos
Bookmarks
its between C and E.
bottom line, once you have narrowed down to 2 choice please always analyze them critically before you mark your answer choice. This is very important on 700 level questions.
E is bit tricky to understand (atleast for me, i am non-native), but when you reread it, basically it says that claim increase faster then sales that is completely wrong choice so eliminate.
Answer: C
bottom line, once you have narrowed down to 2 choice please always analyze them critically before you mark your answer choice. This is very important on 700 level questions.
E is bit tricky to understand (atleast for me, i am non-native), but when you reread it, basically it says that claim increase faster then sales that is completely wrong choice so eliminate.
Answer: C
mohnish104
