California banks

[Mani_mba]

Consumers in California seeking personal loans have fewer banks to turn to than do consumers elsewhere in the United States. This shortage of competition among banks explains why interest rates on personal loans in California are higher than in any other region of the United States.
Which of the following, if true, most substantially weakens the conclusion above?
(A) Because of the comparatively high wages they must pay to attract qualified workers.California banks charge depositors more than banks else where do for many of the services they offer.
(B) Personal loans are riskier than other types of loans, such as home mortgage loans, that banks make.
(C) Since bank deposits in California are covered by the same type of insurance that guarantees bank deposits in other parts of the United States, they are no less secure than deposits elsewhere.
(D) The proportion of consumers who default on their personal loans is lower in California than in any other region of the United States.
(E) Interest rates paid by California banks to depositors are lower than those paid by banks in other parts of the United States because in California there is less competition to attract depositors.

A is the OA. Could anyone explain this ?

[Suyog]

Objective: Weaken

Conclusion: shortage of competition among banks explains that interest rates on personal loans in California are higher.

What we need to find out is: Some other reason than "Competition among banks" which will say that interest rates are high.

Options:
1. Exactly what we need... cause of high wages, banks in cali are charging more interest rates than any other region.

2. nuthin to do with risk, mortgages and stuff

3. speaks about security of deposits... Nopes..

4. does not explains how lower proportion of people will cause for higher interest rates... no...

5. Interest rates are lower??? no

Choose (a)

[reachac]

IMO A

provides alternative reson for higher interest rates and hence weakens the evidence used to draw the conclusion therby weakening the arg on the whole.

[kiranlegend]

Consumers in California seeking personal loans have fewer banks to turn to than do consumers elsewhere in the United States. This shortage of competition among banks explains why interest rates on personal loans in California are higher than in any other region of the United States.
Which of the following, if true, most substantially weakens the conclusion above?
(A) Because of the comparatively high wages they must pay to attract qualified workers.California banks charge depositors more than banks else where do for many of the services they offer.
(B) Personal loans are riskier than other types of loans, such as home mortgage loans, that banks make.
(C) Since bank deposits in California are covered by the same type of insurance that guarantees bank deposits in other parts of the United States, they are no less secure than deposits elsewhere.
(D) The proportion of consumers who default on their personal loans is lower in California than in any other region of the United States.
(E) Interest rates paid by California banks to depositors are lower than those paid by banks in other parts of the United States because in California there is less competition to attract depositors.

A is the OA. Could anyone explain this ?

first coming to D.. initially, I picked D. D is a trap..

but certainly A is the correct choice.

[khanshainur]

Option A looks good than other answers.