It is currently 17 Oct 2017, 12:28

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Which of the following, if true, is the most logical

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
GMAT Club Legend
GMAT Club Legend
avatar
Joined: 15 Dec 2003
Posts: 4285

Kudos [?]: 527 [0], given: 0

Which of the following, if true, is the most logical [#permalink]

Show Tags

New post 22 Sep 2004, 14:11
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 100% (03:21) wrong based on 1 sessions

HideShow timer Statistics

Which of the following, if true, is the most logical completion of the argument below?

The tax system of the Republic of Grootland encourages borrowing by granting its taxpayers tax relief for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Grootland's tax system does not consistently favor borrowing over saving, for if it did, there would be no ____

A) tax relief in Grootland for those portions of a taxpayer's income, if any, that are set aside to increase that taxpayer's total savings
B) tax relief in Grootland for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans
C) tax relief in Grootland for interest that taxpayers are charged on the unpaid balance in credit card accounts
D) taxes due in Grootland on the cash value of gifts received by taxpayers from banks trying to encourage people to open savings accounts
E) taxes due in Grootland on the amount that a taxpayer has invested in interest-bearing savings accounts
_________________

Best Regards,

Paul

Kudos [?]: 527 [0], given: 0

Director
Director
User avatar
Joined: 05 May 2004
Posts: 574

Kudos [?]: 67 [0], given: 0

Location: San Jose, CA
Re: CR Republic of Grootland [#permalink]

Show Tags

New post 22 Sep 2004, 15:09
A it is
This is a classic double negative Q and I always get confused!
Basically the answer can be either "there's no tax relief for a situation where borrowing takes place" or "there's tax relief for a situation where savings takes place". A talks about the latter. Hope my logic is correct :wink:

Kudos [?]: 67 [0], given: 0

GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 07 Jul 2004
Posts: 5036

Kudos [?]: 436 [0], given: 0

Location: Singapore
 [#permalink]

Show Tags

New post 22 Sep 2004, 18:52
Seems A is the answer. If it always favored borrowign, then there wouldn't be any tax relief for savings. A seems to imply there are some reliefs for savings.

A very difficult but interesting question !

Kudos [?]: 436 [0], given: 0

GMAT Club Legend
GMAT Club Legend
avatar
Joined: 15 Dec 2003
Posts: 4285

Kudos [?]: 527 [0], given: 0

 [#permalink]

Show Tags

New post 23 Sep 2004, 18:38
Nice, OA is A
_________________

Best Regards,

Paul

Kudos [?]: 527 [0], given: 0

Director
Director
avatar
Joined: 14 Jul 2004
Posts: 698

Kudos [?]: 56 [0], given: 0

 [#permalink]

Show Tags

New post 08 Dec 2004, 09:14
Can someone elaborate on how to solve questions like this. I see the double negative

[Nevertheless, it is clear that Grootland's tax system does not consistently favor borrowing over saving, for if it did, there would be no]

This could be paraphrased as "Nevertheless, it is clear that Grootland's tax system favored borrowing over saving, then the following would happen [Is my paraphrasing correct..?]

I'm not so sure my paraphrasing is correct.....

Here is what i've understood so far:

- Borrowing = Tax Relief and Savings = No Tax Relief. But this cannot happen all the time because .........

I then get lost in the "double negatives" and the answer choices. Can someone pls elaborate and let me "peek into" your mind.

regards
gmataquaguy

Kudos [?]: 56 [0], given: 0

GMAT Club Legend
GMAT Club Legend
avatar
Joined: 15 Dec 2003
Posts: 4285

Kudos [?]: 527 [0], given: 0

 [#permalink]

Show Tags

New post 08 Dec 2004, 09:18
Follow this link:
http://www.gmatclub.com/phpbb/viewtopic ... +grootland
See the last post, it's just another way of looking at the problem
_________________

Best Regards,

Paul

Kudos [?]: 527 [0], given: 0

  [#permalink] 08 Dec 2004, 09:18
Display posts from previous: Sort by

Which of the following, if true, is the most logical

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


cron

GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.