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Treasury

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by gmatblood » Thu Oct 20, 2011 10:22 am
As the Federal government's deficit grows, analysts project that the extra cost to the Treasury Department in higher interest rates is well over 50 basis points per year.

A. the extra cost to the Treasury Department in higher interest rates is well over 50 basis points per year
B. the extra cost to the Treasury Department, incurred in higher interest rates, is going to be well over an extra 50 basis points per year
C. the Treasury Department will face higher interest rates, well over an extra 50 basis points per year
D. higher interest rates will cost the Treasury Department well over an extra 50 basis points per year
E. well over an extra 50 basis points per year will be the cost that is going to be borne by the Treasury Department

IMO: D
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by saketk » Thu Oct 20, 2011 10:59 am
my last post for the day .. very lazy -- this one was easy .. option D

Active voice and clearly conveys the meaning that the cause is : higher interest rates. effect is: extra 50 basis points per year to Treasury department..


Good nite :)
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by indi » Thu Oct 20, 2011 4:39 pm
Yes..D
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by sam2304 » Fri Oct 21, 2011 1:36 am
IMO D.
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by mankey » Sat Oct 22, 2011 11:58 am
Why not C?

Also if someone could explain what is really happening in the sentence.

Thanks.
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by gmatrant » Sat Oct 22, 2011 1:29 pm
As the Federal government's deficit grows, analysts project that the extra cost to the Treasury Department in higher interest rates is well over 50 basis points per year.
A. the extra cost to the Treasury Department in higher interest rates is well over 50 basis points per year - This choice means that the treasury department is going to bear a cost which is measured in "higher interest rates" . This does not make sense
B. the extra cost to the Treasury Department, incurred in higher interest rates, is going to be well over an extra 50 basis points per year - the modifier is wrongly places saying that the treasury department is incurred in higher interest rates
C. the Treasury Department will face higher interest rates, well over an extra 50 basis points per year - it is not the treasury department that will face higher interest rates, rather levying higher interest rates by the treasury will cost the treasury more
D. higher interest rates will cost the Treasury Department well over an extra 50 basis points per year - This is correct. Higher interest rates will cost the treasury over an extra 50 basis points
E. well over an extra 50 basis points per year will be the cost that is going to be borne by the Treasury Department - this choice reads that 50 basis points per yeas is the cost, which is wrong
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