Sneha Jaiswal wrote:
Hi bb, thank for the question. The question demands prior knowledge of how the trade and currency valuation are related.
I took a different approach of understanding that 'demand and supply has led to increase in the currency value' and 'the international demand has been high' is explicitly given as a premise. So the assumption could only be that Country A has been able to successfully supply to the demand. So anything related to the ease of supply could be considered. Hence chose A.
. Probably A is irrelevant because if we negate the statement, i.e., If shipping is difficult, still supply could be made through difficult routes.
Also, 'the classic demand and supply' seems to refer to demand and supply of products manufactured in the country and not the currency. Payment made in any currency would increase the country's reserves to strengthens its currency. Pls correct me if I m wrong.
Hi sneha
I had the same query as yours when i first attempted this question. Moreover, me too was on the verge of dropping a post on similar lines.
It seems you joined gmatclub recently and i assume that you are in the preliminary stage of preperation.
So a small piece of advice.
In the question above,
The currency of Country A has been strengthening against other worldwide currencies for the past year, - the question specifically starts by discussing about currency of country A. You may call this a premise or
Intermediate conclusion.
and economists have observed that the worldwide demand for products manufactured in Country A has been rapidly growing. - a premise aka additional information.
Thus, the economists reason that Country A’s currency is strengthening because of classic supply and demand factors. - the conclusion.
Also keep the main conclusion's aim in the back of the mind when reading thru the choices.
The whole argument is revolving around country's A Currency. So keep a eye open for any option which refers to the same.
You shall find this beneficial especially in the sub-600 and 600-700 range of questions.
Hope its clear.
Now the reason i underlined intermediate conclusion, consider the following argument -
"Economists have observed that the worldwide demand for products manufactured in Country A has been rapidly growing. They reason that Country A’s currency is strengthening because of classic supply and demand factors. Thus it can be concluded that the currency of Country A has been strengthening against other worldwide currencies for the past year."
Re-read the answers.