Since savings banks have to use short-term deposits to finance long-term fixed-rate mortgage loans, they sometimes lose money when there is a rise in short-term rates and, on the other hand, they are unable to raise the rates on their mortgages.
(A) when there is a rise in short-term rates and, on the other hand, they are unable to raise
(B) when short-term rates rise and they are unable to raise
(C) when a rise in short-term rates occurs and, correspondingly, there is no rise possible in
(D) with a rise in short-term rates, and they are unable to raise
(E) with short-term rates on the rise and no rise possible in
[spoiler]OA: Will be posted later. Plz discuss each answer choice in detail[/spoiler]
Since savings banks have to use short-term deposits
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i vote for B, but have no very clear objections against other choices
may be because of ||-ism
they sometimes lose money ....and they are unable to raise
in A when there is a rise... is not bad but to me inferior, to the short-term rates rise-in B
may be because of ||-ism
they sometimes lose money ....and they are unable to raise
in A when there is a rise... is not bad but to me inferior, to the short-term rates rise-in B
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Since savings banks have to use short-term deposits to finance long-term fixed-rate mortgage loans, they sometimes lose money when there is a rise in short-term rates and, on the other hand, they are unable to raise the rates on their mortgages.
(A) when there is a rise in short-term rates and, on the other hand, they are unable to raise
(B) when short-term rates rise and they are unable to raise
(C) when a rise in short-term rates occurs and, correspondingly, there is no rise possible in
(D) with a rise in short-term rates, and they are unable to raise
(E) with short-term rates on the rise and no rise possible in
First thing that comes in mind is parellism after seeing this question
to use and to raise
This eliminates except B and D......a rise in short term rates and short term rates....
B is better to use ...SO OA is B
(A) when there is a rise in short-term rates and, on the other hand, they are unable to raise
(B) when short-term rates rise and they are unable to raise
(C) when a rise in short-term rates occurs and, correspondingly, there is no rise possible in
(D) with a rise in short-term rates, and they are unable to raise
(E) with short-term rates on the rise and no rise possible in
First thing that comes in mind is parellism after seeing this question
to use and to raise
This eliminates except B and D......a rise in short term rates and short term rates....
B is better to use ...SO OA is B
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if the option D is rewritten as
when short term rates rise, and they are unable to raise.... would that be correct????
Acc. to my understanding it would be correct as the part they are unable to raise the rates on their mortgages is an IC. Is my reasoning correct??
Please correct me if wrong....
Thanks
Gautam
when short term rates rise, and they are unable to raise.... would that be correct????
Acc. to my understanding it would be correct as the part they are unable to raise the rates on their mortgages is an IC. Is my reasoning correct??
Please correct me if wrong....
Thanks
Gautam
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aspirant2011 wrote:Since savings banks have to use short-term deposits to finance long-term fixed-rate mortgage loans, they sometimes lose money when there is a rise in short-term rates and, on the other hand, they are unable to raise the rates on their mortgages.
(A) when there is a rise in short-term rates and, on the other hand, they are unable to raise
(B) when short-term rates rise and they are unable to raise
(C) when a rise in short-term rates occurs and, correspondingly, there is no rise possible in
(D) with a rise in short-term rates, and they are unable to raise
(E) with short-term rates on the rise and no rise possible in
[spoiler]OA: B is correct[/spoiler]
First take: 640 (50M, 27V) - RC needs 300% improvement
Second take: coming soon..
Regards,
HSPA.
Second take: coming soon..
Regards,
HSPA.