OG 2018 CR Q Country X's recent stock-trading

This topic has expert replies
User avatar
Senior | Next Rank: 100 Posts
Posts: 62
Joined: Wed Aug 09, 2017 3:54 pm

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

Country X's recent stock-trading scandal should not diminish investors' confidence in the country's stock market. For one thing, the discovery of the scandal confirms that Country has a strong regulatory system, as the following considerations show. In any stock market, some fraudulent activity is inevitable. If a stock market is well regulated, any significant stock-trading fraud in it will be very likely be discovered. This deters potential perpetrators and facilitates improvement in regulatory processes.

In the argument, the portion in boldface plays which of the following roles?

(A) It is the argument's only conclusion.
(B) It is the conclusion for which the argument provides support and which itself is used to support the argument the argument's main conclusion.
(C) It is argument's main conclusion and is supported by another explicitly stated conclusion for which further support is provided.
(D) It is an assumption for which no explicit support is provided and is used to support the argument's only conclusion.
(E) It is a compound statement containing both the argument's main conclusion and an assumption sued to support that conclusion.

OA: B

I am confused why E is not an assumption. Please, any one can explain. Thanks!

User avatar
Legendary Member
Posts: 2663
Joined: Wed Jan 14, 2015 8:25 am
Location: Boston, MA
Thanked: 1153 times
Followed by:128 members
GMAT Score:770

by DavidG@VeritasPrep » Fri Aug 25, 2017 7:00 am

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

lionsshare wrote:Country X's recent stock-trading scandal should not diminish investors' confidence in the country's stock market. For one thing, the discovery of the scandal confirms that Country has a strong regulatory system, as the following considerations show. In any stock market, some fraudulent activity is inevitable. If a stock market is well regulated, any significant stock-trading fraud in it will be very likely be discovered. This deters potential perpetrators and facilitates improvement in regulatory processes.

In the argument, the portion in boldface plays which of the following roles?

(A) It is the argument's only conclusion.
(B) It is the conclusion for which the argument provides support and which itself is used to support the argument the argument's main conclusion.
(C) It is argument's main conclusion and is supported by another explicitly stated conclusion for which further support is provided.
(D) It is an assumption for which no explicit support is provided and is used to support the argument's only conclusion.
(E) It is a compound statement containing both the argument's main conclusion and an assumption sued to support that conclusion.

OA: B

I am confused why E is not an assumption. Please, any one can explain. Thanks!
We can think of an assumption as an unstated premise. The clause in bold is a conclusion based on the logic offered in the next sentence - the scandal wouldn't have been caught in the absence of a strong regulatory system. Moreover, the argument's main conclusion is that the scandal shouldn't diminish investor confidence in the stock market.
Veritas Prep | GMAT Instructor

Veritas Prep Reviews
Save $100 off any live Veritas Prep GMAT Course