ExpertsGlobal5
In the early 2000s, the incident rate of banking scams in European nations that mandated quarterly bank audits was forty percent higher than that in European nations that have never mandated quarterly bank audits. Thus, one way to bring down the rate of banking scams is to repeal the mandate on quarterly bank audits.
Which of the following, if true, would most weaken the argument above?
A. The annual incident rate of political scams is lower in European nations mandating quarterly bank audits than in European nations without such a mandate.
B. In European nations mandating quarterly bank audits, few banks are penalized for not getting audited every quarter.
C. In European nations without quarterly bank audits, many banks get themselves audited every quarter.
D. The annual incident rate of banking scams in European nations mandating quarterly bank audits has decreased since quarterly bank audits were mandated.
E. Less than half the clients of banks who operate in European nations with quarterly bank audits have their books audited every quarter.
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The passage dates to Early 2000s, there are two groups of banks in the European nations,
one group of banks allowing QBA ( quarterly bank Audit) and
the other group of banks not allowing QBA ( quarterly bank Audit).
The former has Banking scam Incident rates which is 40% higher than the latter.
So, ratio of banks allowing QBA : Banks not allowing QBA = 140:100.
So, to reduce the incidence of banking scams, one way would be to REPEAL the QBA.
we need to find a suitable weakener for the argument.
A. The annual incident rate of political scams is lower in European nations mandating quarterly bank audits than in European nations without such a mandate.
The option is wrong, as it moves out of context and highlights on the political scams. Hence wrong.
B. In European nations mandating quarterly bank audits, few banks are penalized for not getting audited every quarter.
If banks are penalised for not getting QBA, then ,more number of banks must be pushed towards mandatory QBA. Considering the penalising rate, the push might be very low. This option is also wrong, as it speaks about penalising, but the context is repeal of QBA to bring the incidence of banking scams down.
C. In European nations without quarterly bank audits, many banks get themselves audited every quarter.
If many banks gets audited by themselves, this might raise suspicion on the credibility and validity of the incidence rates. So, the data has a likelihood of being fudged or misrepresented. Hence, it’s not whether you opt for QBA or NOT, but whether the audit is done by a professional third party agency. Hence, wrong.
D. The annual incident rate of banking scams in European nations mandating quarterly bank audits has decreased since quarterly bank audits were mandated. This option stands 180 degrees apart from the conclusion - repeal the QBA , to bring down the banking scam incidence rates. As periodic QBA are being performed, the incidence rates are getting reduced. The initial figure of 40% higher, might seem a huge number initially, but the numbers are expected to lower as QBA acts as checks and balances against banking scams. Hence, a valid weakener.
E. Less than half the clients of banks who operate in European nations with quarterly bank audits have their books audited every quarter.
This option mentions the proportion of clients among the banks in European nations that have opted for QBA. This is out of scope. Hence, Wrong.
Option D