In a speech before the Senate Banking Committee, the chairman

Question

In a speech before the Senate Banking Committee, the chairman of the Federal Reserve painted an optimistic picture of the economy, suggesting to investors the central bank in the near future is not lowering interest rates.

Option A
Option B
Option C
Option D
Option E

(This question is from Official Guide. Therefore, because of copyrights, the complete question cannot be copied here. The question can be accessed at GMAT Club)

Solution

Sentence Analysis

  • In a speech (Prepositional phrase modifying the main clause)
    • before the Senate Banking Committee, (Prepositional phrase modifying ‘speech’)
  • the chairman of the Federal Reserve painted an optimistic picture of the economy, (Main Subject: ‘chairman’; Main Verb: ‘painted’)
    • suggesting to investors (Comma+verb-ing modifier modifying the preceding clause)
      • the central bank in the near future is not lowering interest rates. (A clause modifying ‘suggesting’ – telling what was suggested)

The sentence says that the chairman of the Federal reserve did something in a speech. What did he do? He painted a positive picture of the economy. This painting of the positive picture suggested to the investors that the central bank will not lower interest rates in the near future.

The sentence has the following problems:

  1. The use of present continuous tense “is not lowering” is incorrect since the action will happen in the future and is not happening currently.
  2. The absence of ‘that’ after ‘suggesting to investors’ makes the comprehension of the sentence difficult.
  3. The position of “in the near future” is not appropriate. It should be placed after “lowering interest rates”.

Option Analysis

(A) Incorrect. For the reasons mentioned above.

(B) Correct. This option corrects all the errors of the original sentence without introducing any new error.

(C) Incorrect. For the following reasons:

  1. The use of ‘which’ to refer to preceding clause is not recommended.
  2. The placement of “to investors” is incorrect. “to investors” should be placed right after “suggests”. The current structure means that interest rates will not be lowered to investors. This doesn’t make sense.
  3. The placement of ‘in the near future’ is incorrect. This phrase should be placed after ‘lowered’.
  4. The use of passive structure “will not be lowered by the central bank” is not preferred.

(D) Incorrect. For the following reasons:

  1. The prepositional phrase “with the suggestion” doesn’t fit in with the main clause “the chairman painted an optimistic picture”.
  2. The placement of ‘in the near future’ is incorrect. This phrase should be placed after ‘lowered’.
  3. The use of passive structure “would not be lowered by the central bank” is not preferred.

(E) Incorrect. For the following reasons:

  1. 1st error of option D
  2. “of interest rates not being lowered in the near future by the central bank” is a convoluted way of saying the same thing communicated aptly in option B.

If you have any doubts regarding any part of this solution, please feel free to ask in the comments section.

About Chiranjeev Singh

An Alumnus of IIM Ahmedabad and with scores of 780 (2017) and 770 (2013) on GMAT and 99.98%ile on CAT, Chiranjeev is one of the most qualified GMAT tutors in India. Chiranjeev has earlier served as Director of Curriculum at e-GMAT. Chiranjeev has been helping students ace GMAT since 2012. He follows a concept-based methodology to teaching GMAT and is very committed to student success. You may contact him for any private GMAT tutoring needs at CJ@GMATwithCJ.com. He conducts online sessions for students across the world.

Leave a Reply

Your email address will not be published. Required fields are marked *

8 − 2 =