736. The economic forces which may affect the new public offering of stock include sudden downturns in the market, hedging and other investor strategies for preventing losses, loosening the interest rates in Washington, and fearing that the company may still be undercapitalized.

(A) loosening the interest rates in Washington, and fearing that the company may still be undercapitalized
(B) loosening the interest rates in Washington, and a fear of the company still being undercapitalized
(C) a loosening of the interest rates in Washington, and fearing that the company may still be undercapitalized
(D) a loosening of the interest rates in Washington, and a fear of the still undercapitalized company
(E) a loosening of the interest rates in Washington, and a fear that the company may still be undercapitalized

Solution:

Parallelism

In A, “The economic forces … include sudden downturns …, hedging and other investor strategies …, loosening the interest …, and fearing that …” violates parallelism.
“Sudden downturns” and “hedging and other investing strategies” are nouns but “loosening…” and “fearing…” are verbs.
In B, “loosening the interest…” violates the parallelism.
In C, “fearing that…” violates parallelism.
In D, incorrectly suggests that “undercapitalized company” is an established fact.
E is the best choice. It maintains parallelism through
“The economic forces … include sudden downturns …, hedging and other investor strategies …, a loosening of …, and a fear that …”.

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