The right answer is option E.Some officials both at the Treasury Department and the Securities and Exchange Commission recently said in off-the-record conversations that it may be a good idea to require that all large and highly leveraged banks should decrease their debt and should increase their asset base.
(A)
to require that all large and highly leveraged banks
should decrease their debt and
should increase their asset base
should is not necessary.
should decrease their debt should rather be
to decrease their debt. Likewise
should increase their assets should rather be
to increase their assets.
(B)
requiring that all large and highly leveraged banks decrease their debt and increase their asset base
requiring should rather be
to require as to require expresses intent or purpose, which is in line with the meaning of the sentence.
(C) to require
of all large and highly leveraged banks
the decreasing of debt and
an increase in their asset base
The preposition
of is not required. In addition, the decreasing of debts and an increase in their asset base make the sentence not concise compared with option E.
(D)
requiring that all large and highly leveraged banks
to decrease their debt and to increase their asset base
to require is better in the context than
requiring. There is no need to repeat to after and as the infinitive parallelism can be set off by the first
to after bank.
(E)
to require all large and highly leveraged banks to
decrease their debt and
increase their asset base
This is correct answer choice out of the lot. to require expresses intent and the parallelism is between decrease and increase is correct. This option is the most concise choice which retains the original meaning of the sentence.