650. 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
Solution:
Pronoun + Logical
In A, there is ambiguous.
C is wordy.
D illogically suggests that they lose money with a rise in short rates only. But the other part has been kept separate. Actually the money is lost due to the other part- unable to raise which shouldnt have been kept so remotely connected to the sentence.
In E, with short-term rates on the rise is awkward.
B is the best choice.
Moreover, in the non-underlined part, they can refer to mortgage loans, short term deposits, and even savings banks. But logically, they must refer to savings banks.
Sentence Correction - 1000 Questions with Solution:
(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
Solution:
Pronoun + Logical
In A, there is ambiguous.
C is wordy.
D illogically suggests that they lose money with a rise in short rates only. But the other part has been kept separate. Actually the money is lost due to the other part- unable to raise which shouldnt have been kept so remotely connected to the sentence.
In E, with short-term rates on the rise is awkward.
B is the best choice.
Moreover, in the non-underlined part, they can refer to mortgage loans, short term deposits, and even savings banks. But logically, they must refer to savings banks.
Sentence Correction - 1000 Questions with Solution: