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Difficulty—
During the recent economic downturn, banks contributed to the decline by loaning less money. Prior to the downturn, regulatory standards for making bank loans were tightened. Clearly, therefore, banks will lend more money if those standards are relaxed.
The argument assumes that...
A. The downturn did not cause a significant decrease in the total amount of money on deposit with banks, which is the source of funds for banks to lend
B. The imposition of the tighter regulatory standards was not a cause of the economic downturn
C. The reason for tightening the regulatory standards was not arbitrary
D. No economic downturn is accompanied by a significant decrease in the amount of money loaned out by banks to individual borrowers and to businesses
E. No relaxation of standards for bank loans would compensate for the effects of the downturn
The OA is A
The argument assumes that...
A. The downturn did not cause a significant decrease in the total amount of money on deposit with banks, which is the source of funds for banks to lend
B. The imposition of the tighter regulatory standards was not a cause of the economic downturn
C. The reason for tightening the regulatory standards was not arbitrary
D. No economic downturn is accompanied by a significant decrease in the amount of money loaned out by banks to individual borrowers and to businesses
E. No relaxation of standards for bank loans would compensate for the effects of the downturn
The OA is A
