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The financial crisis of 2008 took place

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by patanjali.purpose » Mon Jan 16, 2012 8:56 pm
The financial crisis of 2008 took place because increase in housing prices between 1998 and 2005 lowered the risk on mortgages that, in turn, made the return on mortgage backed securities very attractive.

(A) lowered the risk on mortgages that, in turn, made the return on mortgage backed securities very attractive.
(B) lowered the risk on mortgages, making the return on mortgage backed securities very attractive.
(C) lowered the risk on mortgages, made the return on mortgage backed securities very attractive.
(D) and lowering the risk on mortgages that in turn made the return on mortgage backed securities very attractive.
(E) to lower the risks on mortgages to make the return on mortgage backed securities very attractive.

Pls explain your pick esp A vs B
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by sam2304 » Mon Jan 16, 2012 9:48 pm
IMO A.

B - comma + ing form modifies the entire preceding clause. Here it seems the increase of housing prices seem to make the return on mortgage backed securities attractive whereas it is because of the low risk on mortgages which is clear in A. Is it the right choice ?
Last edited by sam2304 on Mon Jan 16, 2012 9:49 pm, edited 1 time in total.
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by rijul007 » Mon Jan 16, 2012 9:49 pm
patanjali.purpose wrote:The financial crisis of 2008 took place because increase in housing prices between 1998 and 2005 lowered the risk on mortgages that, in turn, made the return on mortgage backed securities very attractive.

(A) lowered the risk on mortgages that, in turn, made the return on mortgage backed securities very attractive.
(B) lowered the risk on mortgages, making the return on mortgage backed securities very attractive.
(C) lowered the risk on mortgages, made the return on mortgage backed securities very attractive.
(D) and lowering the risk on mortgages that in turn made the return on mortgage backed securities very attractive.
(E) to lower the risks on mortgages to make the return on mortgage backed securities very attractive.
------ because increase(noun) --------
A sentence must have a subject and a verb.
Here the subject increase should have a verb for the sentence to make sense
in option D and E, there is no verb corresponding to the increase...
Eliminate D and E

Option C - the increase lowered the risk, made the return attractive.. awkward structure [could have made sense if there was an "and" instead of comma but still would be wrong because of the meaning]


B/w option A and B
Option A- the use of "in turn" doesn't seem to be required.. so I eliminated option A on account of being too wordy

Option B seems correct

IMO B
OA?
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by rijul007 » Mon Jan 16, 2012 10:52 pm
sam2304 wrote:IMO A.

B - comma + ing form modifies the entire preceding clause. Here it seems the increase of housing prices seem to make the return on mortgage backed securities attractive whereas it is because of the low risk on mortgages which is clear in A. Is it the right choice ?
IMO:
"making" is modifying the preceding clause
increase in housing prices between 1998 and 2005 lowered the risk on mortgages, making the return on mortgage backed securities very attractive.


So B should stand correct

Experts.. any comments?
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by asmitaitis » Tue Jan 17, 2012 1:55 am
IMO B
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by MakeUrTimeCount » Tue Jan 17, 2012 3:12 am
IMO A.

Making implies that the financial crash made so happen.

The financial crisis took place because X happened, making the return on mortgage backed securities very attractive.
(If comma was not there, then things would have been different)
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by GMATGuruNY » Tue Jan 17, 2012 6:32 am
patanjali.purpose wrote:The financial crisis of 2008 took place because an increase in housing prices between 1998 and 2005 lowered the risk on mortgages that, in turn, made the return on mortgage backed securities very attractive.

(A) lowered the risk on mortgages that, in turn, made the return on mortgage backed securities very attractive.
(B) lowered the risk on mortgages, making the return on mortgage backed securities very attractive.
(C) lowered the risk on mortgages, made the return on mortgage backed securities very attractive.
(D) and lowering the risk on mortgages that in turn made the return on mortgage backed securities very attractive.
(E) to lower the risks on mortgages to make the return on mortgage backed securities very attractive.

Pls explain your pick esp A vs B
In C, lowered the risk...made the return cannot be connected by a comma. Eliminate C.

In D and E, an increase (subject) lacks a verb. Eliminate D and E.

In A, the risk on mortgages...that made the return...very attractive does not convey the intended meaning. It was not the RISK or the MORTGAGES that made the return very attractive; it was the REDUCTION in the risk that made the return very attractive. Eliminate A.

The correct answer is B.

A present participle (VERBing) implies contemporaneous action: one action happening at the same time as another action. B employs such a present participle to convey the intended meaning: an increase in prices LOWERED the risk, and -- at the same time -- this increase was MAKING the return on mortgages very attractive.
Last edited by GMATGuruNY on Tue Jan 17, 2012 6:55 am, edited 1 time in total.
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by ArunangsuSahu » Tue Jan 17, 2012 6:46 am
in the choice (A) that is getting used as to modify the risk of mortgages...which is wrong

It should modify the lowering of the risk of mortgae

So(B) is the answer
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