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.
Apr 2912:30 AM EDT
-01:30 AM EDT
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.
Apr 2808:00 AM PDT
-11:00 AM PDT
Whether you are just beginning your MBA journey or fine-tuning your path to a 700+ score, GMAT Day is designed to give you a competitive edge.
Apr 3001:30 AM EDT
-02:30 AM EDT
At one point, she believed GMAT wasn’t for her. After scoring 595, self-doubt crept in and she questioned her potential. But instead of quitting, she made the right strategic changes. The result? A remarkable comeback to 695. Check out how Saakshi did it.
May 0111:00 AM PDT
-12:00 PM PDT
Free- full-length test + 15 concept videos + 150+ short videos + study plan!
May 0306:30 AM PDT
-08:30 AM PDT
Verbal trouble on GMAT? Fix it NOW! Join Sunita Singhvi for a focused webinar on actionable strategies to boost your Verbal score and take your performance to the next level.
01 Feb 2021, 13:25
Kudos
Bookmarks
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
55% (01:40) correct
45%
(01:48)
wrong
based on 261
sessions
History
Date
Time
Result
Not Attempted Yet
After the stock market of Country X crashed, the president took to the airwaves to claim that the crash occurred due to the foolish lending practices of mortgage companies. The president argued that the companies issued too many high risk loans and had to default on many of them, leading to the crash.
Which of the following investigations, if it could be carried out, would be most useful in an evaluation of the president of Country X’s claim?
A. figuring out the average amount of the loans the mortgage companies defaulted on
B. attempting to predict the most likely date of the country’s economic recovery
C. calculating exactly how many high risk loans were issued by the mortgage companies
D. analyzing the effects of comparable loan defaults in other countries with economies similar to Country X’s
E. comparing the effects of the crash on the mortgage companies to the effects on the individuals who received the loans
Which of the following investigations, if it could be carried out, would be most useful in an evaluation of the president of Country X’s claim?
A. figuring out the average amount of the loans the mortgage companies defaulted on
B. attempting to predict the most likely date of the country’s economic recovery
C. calculating exactly how many high risk loans were issued by the mortgage companies
D. analyzing the effects of comparable loan defaults in other countries with economies similar to Country X’s
E. comparing the effects of the crash on the mortgage companies to the effects on the individuals who received the loans
11 Feb 2021, 00:22
Kudos
Bookmarks
To evaluate presidents claim we need to find the link between High Risk loans-loan defaults and Stock Market crash.
A. figuring out the average amount of the loans the mortgage companies defaulted on . INCORRECT.
No information was given w.r.t the amount of default that could lead to stock market crash. So finding out the
average doesnt help in evaluating.
B. attempting to predict the most likely date of the country’s economic recovery . INCORRECT . Out of scope . It does'nt
deal with cause and effect.
C. calculating exactly how many high risk loans were issued by the mortgage companies. INCORRECT.
This option focuses on the quanitity of high risk loans, But we do not know if its the cause of the crash.
D. analyzing the effects of comparable loan defaults in other countries with economies similar to Country X’s.CORRECT .
This is the only option which deals with logic of the presidents statement. Evaluating the effects in countries with
similar economies helps to decide whether there is a cause and effect between bad loans and crash . Hence Correct.
E. comparing the effects of the crash on the mortgage companies to the effects on the individuals who received the
loans. Incorrect . Out of scope.
A. figuring out the average amount of the loans the mortgage companies defaulted on . INCORRECT.
No information was given w.r.t the amount of default that could lead to stock market crash. So finding out the
average doesnt help in evaluating.
B. attempting to predict the most likely date of the country’s economic recovery . INCORRECT . Out of scope . It does'nt
deal with cause and effect.
C. calculating exactly how many high risk loans were issued by the mortgage companies. INCORRECT.
This option focuses on the quanitity of high risk loans, But we do not know if its the cause of the crash.
D. analyzing the effects of comparable loan defaults in other countries with economies similar to Country X’s.CORRECT .
This is the only option which deals with logic of the presidents statement. Evaluating the effects in countries with
similar economies helps to decide whether there is a cause and effect between bad loans and crash . Hence Correct.
E. comparing the effects of the crash on the mortgage companies to the effects on the individuals who received the
loans. Incorrect . Out of scope.
11 Feb 2021, 01:08
Kudos
Bookmarks
After the stock market of Country X crashed, the president took to the airwaves to claim that the crash occurred due to the foolish lending practices of mortgage companies. The president argued that the companies issued too many high risk loans and had to default on many of them, leading to the crash.
Main point of the President
Stock market crash was caused by Risky loans given by Mortgage companies.
In an evaluate question ,think about is the choice helpful to say whether the Argument is valid or not valid.
In simpler terms , the correct answer can either strengthen or weaken the argument.
Which of the following investigations, if it could be carried out, would be most useful in an evaluation of the president of Country X’s claim?
A. figuring out the average amount of the loans the mortgage companies defaulted on
Does the amount of loan handed out help us to determine the crash was due to Loan companies? What amount of default loans causes a crash? We don't know. Eliminate A.
B. attempting to predict the most likely date of the country’s economic recovery
Out of Scope. We don't know the economy has crashed, we only know that the stock market has crashed.
Even if we knew ,does the date of recovery help to determine the argument sucks or not.Nope.Eliminate B.
C. calculating exactly how many high risk loans were issued by the mortgage companies.
Similar to A. Does knowing the number of loans handled out matter? The companies gave 2 risky loans or 10 risky loans. What number causes a crash we don't know.
The Number alone is not enough to weaken or strengthen the argument..Eliminate C.
D. analyzing the effects of comparable loan defaults in other countries with economies similar to Country X’s
This option is not perfect but makes more sense than the others.
If the other country with comparable loan defaults and a similar economy also suffered a stock market crash. Risky Loans caused the crash.- Strengthens our main argument
If the other country with comparable loan defaults and a similar economy did not suffer a crash. The risky loans did not cause the crash, Something else caused the crash -Weakens the argument
Correct Answer.
E. comparing the effects of the crash on the mortgage companies to the effects on the individuals who received the loans.
Who cares about the effect of the crash on the companies or the individuals.
We are concerned about what caused the crash not about what effect it had.
Argument says the Crash was caused by the companies not the other way around. Eliminate E
Main point of the President
Stock market crash was caused by Risky loans given by Mortgage companies.
In an evaluate question ,think about is the choice helpful to say whether the Argument is valid or not valid.
In simpler terms , the correct answer can either strengthen or weaken the argument.
Which of the following investigations, if it could be carried out, would be most useful in an evaluation of the president of Country X’s claim?
A. figuring out the average amount of the loans the mortgage companies defaulted on
Does the amount of loan handed out help us to determine the crash was due to Loan companies? What amount of default loans causes a crash? We don't know. Eliminate A.
B. attempting to predict the most likely date of the country’s economic recovery
Out of Scope. We don't know the economy has crashed, we only know that the stock market has crashed.
Even if we knew ,does the date of recovery help to determine the argument sucks or not.Nope.Eliminate B.
C. calculating exactly how many high risk loans were issued by the mortgage companies.
Similar to A. Does knowing the number of loans handled out matter? The companies gave 2 risky loans or 10 risky loans. What number causes a crash we don't know.
The Number alone is not enough to weaken or strengthen the argument..Eliminate C.
D. analyzing the effects of comparable loan defaults in other countries with economies similar to Country X’s
This option is not perfect but makes more sense than the others.
If the other country with comparable loan defaults and a similar economy also suffered a stock market crash. Risky Loans caused the crash.- Strengthens our main argument
If the other country with comparable loan defaults and a similar economy did not suffer a crash. The risky loans did not cause the crash, Something else caused the crash -Weakens the argument
Correct Answer.
E. comparing the effects of the crash on the mortgage companies to the effects on the individuals who received the loans.
Who cares about the effect of the crash on the companies or the individuals.
We are concerned about what caused the crash not about what effect it had.
Argument says the Crash was caused by the companies not the other way around. Eliminate E
