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SB - Mortages

Expert replies
by GmatKiss » Wed Sep 28, 2011 8:17 am
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

OA after sometime!
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Source: — Sentence Correction |

by gmatblood » Wed Sep 28, 2011 10:39 am
GmatKiss 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

OA after sometime!
IMO:D
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by mhananoki » Wed Sep 28, 2011 12:11 pm
I think B is the best answer because it is concise and doesn't change the meaning of the sentence.
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by gunjan1208 » Wed Sep 28, 2011 8:00 pm
C seems the best. However,I am clueless and just trying to make an educated guess. Any Titan, expert please!
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by mithra.aravind » Wed Sep 28, 2011 10:13 pm
E sounds odd.. In A, B and D.. usage of 'they' is ambiguous.. Hence, IMO C
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by Acorn » Thu Sep 29, 2011 6:19 am
In my opinion B.

Mithra.aravind= E sounds odd.. In A, B and D.. usage of 'they' is ambiguous.. Hence, IMO C

In B 'They' is mentioned in the non-underlined portion of the sentence. So the use of "they" in the underlined portion clearly refers to the antecedant.

GmatKiss...OA please
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by Deepthi Subbu » Fri Sep 30, 2011 4:52 am
+ 1 for B . GmatKiss ,request you to post the OA.
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by ace.gmat » Fri Sep 30, 2011 6:41 am
IMO B. "They" logically can only refer to Banks.
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by GmatKiss » Fri Sep 30, 2011 10:03 am
OA is B
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