The World Bank president recently warned that the world was in

Question

The World Bank president recently warned that the world was in a precarious position. He called rising food and oil prices a man-made catastrophe that could jeopardize the gains made in overcoming poverty over the past seven years. Asian governments are battling on their own, though it is unlikely that Asia will run into a financial crisis.

Which of the following about Asia, if true helps most to justify the optimism displayed by the writer?

A. Inflation throughout Asia is likely to continue to rise for at least a year.

B. Asia has a track record of booming economic growth.

C. Price inflation affects the middle class most as they have to spend a larger portion of their income on food.

D. Rise in food and fuel prices is an international concern and Asian governments have their own fish to fry.

E. Asian countries have large currency reserves and healthy banks.

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sayan640 · Answer

E should be the answer.
Since Asian governments have large currency reserves and banks , they are unlikely to get into trouble.

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Sukrit_08 · Answer

The only answers can be either B or Ez
B should be the answer
Since Asian has a track record for booking economic growth their per capita income should also be able to grow to beat the inflation for food and oil prices.
E is now the as strong an argument as B since reserves cab deplete easily due to rising inflation and banks can go down.

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VivekSri · Answer

RadsAGG · Answer

An easy one I would say. We need to find a good reason behind the writer's optimism toward Asia.

A. Inflation throughout Asia is likely to continue to rise for at least a year. 
This would suggest that Asia is not protected against a continued inflation (does not support writer's optimism)

B. Asia has a track record of booming economic growth.
Not necessarily this would mean a continued growth as well. (does not support writer's optimism)

C. Price inflation affects the middle class most as they have to spend a larger portion of their income on food.
Does not have any direct correlation to Asia. (does not support writer's optimism)

D. Rise in food and fuel prices is an international concern and Asian governments have their own fish to fry.
Just reiterates a point already mentioned in argument.

E. Asian countries have large currency reserves and healthy banks.
This would justify why the writer believes that Asian countries will not suffer as much from the economic conditions. (supports writer's optimism)

Bunuel · Answer

OFFICIAL EXPLANATION

The World Bank president warns that rising food and fuel prices could push the poor countries back into poverty. The writer states that Asia will not face an economic catastrophe. We have to find out the reasons why Asias financial markets would continue to be relatively stable.

(A) does not add much value to our argument apart from restating the facts,

(B) is flattering but we must to bear in mind that an overheated economy and soaring inflation make a deadly combination. so our case does not rest here.

(C) reflects the reality when inflation goes out of control, however, the focus of this argument is on financial crisis.

(D) indicates that doing nothing amidst international chaos is the best option for Asia, but it is hardly the wisest, as Asia is equally exposed to the consequences of rising prices.

(E) CORRECT: It describes conditions that enable Asain countries to protect their economy from international shocks. and if true, even a financial crisis.

The Correct answer Choice is (E)

VerbalBot · Answer

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The World Bank president recently warned that the world was in

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