the Federal Reserve Bank has made discount loans

Question

So that banks can continue to make loans to  their customers, the Federal Reserve Bank has made discount loans available to the banks with a slightly lower interest rate than typical emergency loans

A) their customers, the Federal Reserve Bank has made discount loans available to the banks with a slightly lower interest rate than typical emergency loans

B) their customers, the Federal Reserve Bank has made discount loans available that are slightly lower to the banks than the interest rates available with typical emergency loans

C) their customers, the Federal Reserve Bank has made available to the banks discount loans that have interest rates that are slightly lower than typical emergency loan rates

D) customers, the Federal Reserve Bank made discount loans available to the banks with interest rates that are slightly lower than typical emergency loans

E) customers, the Federal Reserve Bank has made available to the banks discount loans with interest rates that are slightly lower than typical emergency loans.

* Kudos for all Correct Explanation.

The primary objective in this Comparison question is making sure that you're constructing a logical comparison, that you're comparing like things. Note that several answer choices compare "interest rates" (in the new loans) to "typical emergency loans." You need to compare rates to rates - it's that the interest rates on these new loans are lower than the rates of the typical loans.

Only choices (B) and (C) take care to include "rates" in the second item of the comparison (typical emergency loan rates), so you can eliminate (A), (D), and (E). And with (B),. note that "interest rates" is not part of the first item (the new discount loans) so it makes the same mistake, just on the other item of the comparison. Only choice (C) properly compares interest rates to interest rates, so (C) is correct

SajjitaKundu · Answer

I must say this is a toughie. I took well over 2 mins to solve this one.

IMO the answer should be C. Only that compares the rates(of discount loans) correctly with rates(of emergency loans). But even A is a strong contender as it compares loans directly to loans. The only reason I left out A was because of ' a slightly lower interest rate'. I think since loans is being used, we should use rates.

Hope this helps.

vaiv123 · Answer

What should be the posiible answer for this question ??
As acording to me the correct answer should be 'D'

SajjitaKundu · Answer

I would say lets wait for the OA. But can you give the reason for you choosing D?

kdeng9231 · Answer

E 
E) customers, the Federal Reserve Bank has made available to  the banks discount loans  with interest rates that are slightly lower than  typical emergency loans .

solikon · Answer

Correct answer is  C .

One and only make a proper comparison and comparing interest rates to interest rates. All the other options are comparing two incomparable things

SSM700plus · Answer

.

OFFICIAL EXPLANATION FROM VERITAS PREP

The primary objective in this Comparison question is making sure that you're constructing a logical comparison, that you're comparing like things. Note that several answer choices compare "interest rates" (in the new loans) to "typical emergency loans." You need to compare rates to rates - it's that the interest rates on these new loans are lower than the rates of the typical loans.

Only choices (B) and (C) take care to include "rates" in the second item of the comparison (typical emergency loan rates), so you can eliminate (A), (D), and (E). And with (B),. note that "interest rates" is not part of the first item (the new discount loans) so it makes the same mistake, just on the other item of the comparison. Only choice (C) properly compares interest rates to interest rates, so (C) is correct

SSM700plus · Answer

KUDOS granted for correct ans. But Ans A compares interest rates with emergency loan.

So that banks can continue to make loans to their customers, the Federal Reserve Bank has made discount loans available to the banks with a slightly lower  interest rate  than  typical emergency loans .

Here lower than is used for comparison. So, you need to correct your reasoning to eliminate A.

SSM700plus · Answer

Hello, Thanks for giving a try. I noticed that this is your first post. So please let me know if you aren't able to follow the explanation below.

In E, Comparison is between interest rates and emergency loans. This is illogical here.

Please note the comparison marker. It is -  lower than .

Bank discount loans lower than emergency loans..... Doesn't it sound odd here. We should be comparing rates of both the loans not loan.

Hence Correct comparison is presented in C.

Bunuel · Answer

This question is discussed here: so-that-banks-can-continue-to-make-loans-to-their-customers-the-feder-267004.html THE TOPIC IS LOCKED AND ARCHIVED.

the Federal Reserve Bank has made discount loans

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