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V01 #27

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Joined: 04 Feb 2007
Posts: 85

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14 Apr 2010, 16:21
It can be inferred from the passage that the author makes which of the following assumptions about traditional lending in the form of foreign aid?

a) Traditional lenders are more interested in earning profit than in giving assistance.
b) Leaders of struggling countries are dissatisfied with the approach of traditional lending.
c) Traditional lending is not flexible enough to loan amounts less than $1,000. d) A complicated administration process often limited the money available to individuals and families. e) Traditional lending is outdated and will eventually be replaced by microloan programs. the OA is d but I have to disagree with the OA here. "A complicated administration process often limited the money available to individuals and families." When using the phrase "limited the money available.." this means that there was a limited pool of money available for individuals and families. However the passage never states that the pool of money was limited. It states that .." bureaucracy and administration costs frequently…prevented money from reaching individuals and families in struggling countries." using "prevented" here means that there money was available but it was blocked from reaching individuals and families. Since we must use an inference here, this prevention was due to the bureaucracy and administration costs ... which made the program not flexible enough to loan small amounts such as$1000 or less.
Thus I say that the correct answer should be C
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V01 #27   [#permalink] 14 Apr 2010, 16:21
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V01 #27

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