Question
The prime lending rate is a key rate in the economy: not only are the interest rates on most loans to small and medium-sized businesses tied to the prime, but also on a growing number of consumer loans, including home equity loans.
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
- The prime lending rate is a key rate in the economy: (Main Clause – Subject: “rate” Verb: “is”)
- not only are the interest rates (IC following a colon – Subject “interest rates” Verb: “are tied”)
- on most loans (Prepositional Phrase – modifies “rates”)
- to small and medium-sized businesses (Prepositional Phrase – modifies “loans”)
- on most loans (Prepositional Phrase – modifies “rates”)
- tied to the prime, (“tied” a part of the verb, as mentioned above)
- but also on a growing number (Prepositional phrase not parallel to the IC in “not only”)
- of consumer loans, (Prepositional Phrase – modifies “number”)
- including home equity loans. (Prepositional Phrase – modifies “consumer loans”)
- of consumer loans, (Prepositional Phrase – modifies “number”)
Point to observe: The “not only” part contains an inverted sentence structure – an inverted sentence has the verb (are) before the subject (interest rates).
The sentence gives two reasons to explain how the prime lending rate is a key rate in the economy. The two reasons are:
- The interest rates on most loans to small and mid-sized businesses are tied to the prime lending rate.
- The interest rates on a growing number of consumer loans are also tied to the prime lending rate.
The sentence is incorrect since, in the “not only X but also Y” construction, X and Y are not parallel. While X is an independent clause, Y is a prepositional phrase.
Option Analysis
(A) Incorrect. For the error mentioned above.
(B) Correct. We believe that many people reject this option since they find the structure “tied to the prime are” incorrect. However, this structure is a perfectly valid inverted structure. Here, the subject is “the interest rates”, and the verb is “are tied”.
(C) Incorrect. In the “not only X but also Y” construction, X and Y are not parallel. While X has a verb “are tied” for the subject “the interest rates”, Y doesn’t have a verb. Besides, the preposition “on” is missing after “but also”.
(D) Incorrect. This option has the same error as the original sentence has. Also, when we have an independent clause after “not only”, the independent clause needs to be in the inverted sentence structure. In this option, the independent clause following “not only” is in the normal sentence structure.
(E) Incorrect. The absence of the preposition “on” after “but also” makes the elements non-parallel.
Please note that “including” is a preposition. “, including” is not a comma+verb-ing modifier. In this case, “including” modifies the preceding noun “consumer loans”.
If you have any doubts regarding any part of this solution, please feel free to ask in the comments section.
This solution was created by Chiranjeev Singh and Anish Passi.
