In a speech before the Senate Banking Committee, the chairman of the Federal Reserve painted an optimistic picture of the economy, suggesting to investors the central bank in the near future is not lowering interest rates.
(A) suggesting to investors the central bank in the near future is not lowering interest rates
(B) suggesting to investors that the central bank would not lower interest rates in the near future
(C) which suggests that to investors in the near future interest rates will not be lowered by the central bank
(D) with the suggestion to investors in the near future that interest rates would not be lowered by the central bank
(E) with the suggestion to investors of interest rates not being lowered in the near future by the central bank
Meaning:In a speech before the Senate Banking Committee, the chairman of the Federal Reserve painted an optimistic picture of the economy, suggesting to investors the central bank in the near future is not lowering interest rates.
1st: The Chairman is giving a speech in Senate Banking Committee.
2nd:The chairman is paining an optimistic picture of the economy.
3rd:
The chairman is suggesting to investor that central bank s not lowering its interest rates near future.
POE:
(A) suggesting to investors the central bank in the near future is not lowering interest rates
Suggesting: Good one. Who is suggesting " The Chairman"( So this is clear).
Mistake: 1. "In the near future" is not in the proper place.
2. The Chairman is suggesting, it means something in future is gonna happen. So for future, using is not lowering( present participle) is wrong. So this is the wrong option.
(WRONG)
(B) suggesting to investors that the central bank would not lower interest rates in the near future
Correct: Suggesting: Good one. Who is suggesting " The Chairman"( So this is clear).
1. "In the near future" is in proper place.
2."would" not lower interest rates( We use Would in hypothetical situation . So correctly used. (This is the correct answer)
(Correct)
(C) which suggests that to investors in the near future interest rates will not be lowered by the central bank
Mistake: 1.Which is referring to economy. This is wrong. Economy is not suggesting, the Chairman is suggesting.
2.will not be lower: They have used the future tense but for future certainty. So wrong.
(WRONG)
(D) with the suggestion to investors in the near future that interest rates would not be lowered by the central bank
1. "with the suggestion": this one is referring to the optimistic picture not the chairman.
2.in the near future: again in wrong place.
3.interest rates would not be lowered: or the bank would not be lowered the interest rate.
(WRONG)
(E) with the suggestion to investors of interest rates not being lowered in the near future by the central bank
1. same issue as D
2.Interest rates : Same as D
3.being lowered: Passive form ( GMAT not every-time encourage to use Passive)
(WRONG)
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