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15 Jul 2016, 11:45
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B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
80% (01:37) correct
20%
(01:50)
wrong
based on 1212
sessions
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In order to improve the long-term savings rate of its citizens, Levaska’s government has decided to introduce special savings accounts, Citizens can save up to $3,000 a year in special accounts without having to pay tax on the interest, unless they withdraw money from the account before they reach the age of sixty-five. If they do withdraw any money before that age, they have to pay tax on the accumulated interest and a penalty.
Which of the following, if true, most seriously threatens the success of the government’s plan?
A. The banks and financial institutions where the special accounts will be held lobbled hard for their introduction.
B. Nearly all workers in Levaska can already save money in tax-free accounts through their workplace.
C. For the past ten years, Levaskans have been depositing an ever smaller percentage of their income in long-term savings.
D. Many Levaskans continue to work beyond the age of sixty-five.
E. In certain circumstances, such as a serious illness, the government plans to waive the penalty on early withdrawals from the special accounts.
Which of the following, if true, most seriously threatens the success of the government’s plan?
A. The banks and financial institutions where the special accounts will be held lobbled hard for their introduction.
B. Nearly all workers in Levaska can already save money in tax-free accounts through their workplace.
C. For the past ten years, Levaskans have been depositing an ever smaller percentage of their income in long-term savings.
D. Many Levaskans continue to work beyond the age of sixty-five.
E. In certain circumstances, such as a serious illness, the government plans to waive the penalty on early withdrawals from the special accounts.
Could anyone please help me in how B is suffice, as it just considers only workers but the answer should address all citizens
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15 Jul 2016, 12:20
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A. The banks and financial institutions where the special accounts will be held lobbled hard for their introduction. - Incorrect. Can't deduce the effect of this option on the success of the government plan.
B. Nearly all workers in Levaska can already save money in tax-free accounts through their workplace. - Correct. If most of the workers are already able to save through their workplace, only few workers will opt for the government plan, hampering the plan's success.
C. For the past ten years, Levaskans have been depositing an ever smaller percentage of their income in long-term savings. - Incorrect. Irrelevant. Relationship between the plan's success and performance of deposits in the past 10 years cannot be established.
D. Many Levaskans continue to work beyond the age of sixty-five. - Incorrect - Irrelevant
E. In certain circumstances, such as a serious illness, the government plans to waive the penalty on early withdrawals from the special accounts. - Incorrect. Out of context
Answer: B
PS: Its important to choose the best option from the given options. Option B weakens the government's plan even though the option uses the word 'workers' instead of 'citizens'.
Almost similar question from GMAT Prep but with a different answer :): five-years-ago-as-part-of-a-plan-to-encourage-citizens-of-63930.html
B. Nearly all workers in Levaska can already save money in tax-free accounts through their workplace. - Correct. If most of the workers are already able to save through their workplace, only few workers will opt for the government plan, hampering the plan's success.
C. For the past ten years, Levaskans have been depositing an ever smaller percentage of their income in long-term savings. - Incorrect. Irrelevant. Relationship between the plan's success and performance of deposits in the past 10 years cannot be established.
D. Many Levaskans continue to work beyond the age of sixty-five. - Incorrect - Irrelevant
E. In certain circumstances, such as a serious illness, the government plans to waive the penalty on early withdrawals from the special accounts. - Incorrect. Out of context
Answer: B
PS: Its important to choose the best option from the given options. Option B weakens the government's plan even though the option uses the word 'workers' instead of 'citizens'.
Almost similar question from GMAT Prep but with a different answer :): five-years-ago-as-part-of-a-plan-to-encourage-citizens-of-63930.html
RaghavSingla
Joined: 27 Jan 2013
Last visit: 10 Jun 2020
Posts: 83
Given Kudos: 41
Location: India
Schools: EDHEC Sept Intake"17 (A)
GMAT 1: 700 Q49 V35
GPA: 3.7
15 Jul 2016, 15:12
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In order to improve the long-term savings rate of its citizens, Levaska’s government has decided to introduce special savings accounts, Citizens can save up to $3,000 a year in special accounts without having to pay tax on the interest, unless they withdraw money from the account before they reach the age of sixty-five. If they do withdraw any money before that age, they have to pay tax on the accumulated interest and a penalty.
Which of the following, if true, most seriously threatens the success of the government’s plan?
Solution: Any point that would show that people would not be putting money in govt. savings account would be the correct answer. It is sufficient to show that 4 options are incorrect rather than validating the correct option's correctness fully.
A. The banks and financial institutions where the special accounts will be held lobbied hard for their introduction. ---> IRRELEVANT. Doesn't affects argument in any way.
B. Nearly all workers in Levaska can already save money in tax-free accounts through their workplace. ---> Correct. If the people already have an existing facility to put money, why would they choose govt accounts?
C. For the past ten years, Levaskans have been depositing an ever smaller percentage of their income in long-term savings. ---> Incorrect. Since people can save 'up to' $3000, it doesn't matters if they save $1 or $3000 per year.
D. Many Levaskans continue to work beyond the age of sixty-five. --> IRRELEVANT. Doesn't affects argument in any way.
E. In certain circumstances, such as a serious illness, the government plans to waive the penalty on early withdrawals from the special accounts. --> Incorrect. Is a strengthener in fact because it gives people incentive to put money in govt. account.
Which of the following, if true, most seriously threatens the success of the government’s plan?
Solution: Any point that would show that people would not be putting money in govt. savings account would be the correct answer. It is sufficient to show that 4 options are incorrect rather than validating the correct option's correctness fully.
A. The banks and financial institutions where the special accounts will be held lobbied hard for their introduction. ---> IRRELEVANT. Doesn't affects argument in any way.
B. Nearly all workers in Levaska can already save money in tax-free accounts through their workplace. ---> Correct. If the people already have an existing facility to put money, why would they choose govt accounts?
C. For the past ten years, Levaskans have been depositing an ever smaller percentage of their income in long-term savings. ---> Incorrect. Since people can save 'up to' $3000, it doesn't matters if they save $1 or $3000 per year.
D. Many Levaskans continue to work beyond the age of sixty-five. --> IRRELEVANT. Doesn't affects argument in any way.
E. In certain circumstances, such as a serious illness, the government plans to waive the penalty on early withdrawals from the special accounts. --> Incorrect. Is a strengthener in fact because it gives people incentive to put money in govt. account.
