Since it has become known that several of a bank's top executives have been buying shares in their own bank, the bank¡¯s depositors, who had been worried by rumors that the bank faced impending financial collapse, have been greatly relieved. They reason that since top executives evidently have faith in the bank's financial soundness, those worrisome rumors must be false. They might well be overoptimistic, however since corporate executives have sometimes bought shares in their own company in a calculated attempt to dispel negative rumors about the company's health.

In the argument given, the two boldfaced portions play which of the following roles?

A.The first summarizes the evidence used in the reasoning called into question by the argument; the second states the counterevidence on which the argument relies.

B.The first summarizes the evidence used in the reasoning called into question by the argument; the second is an intermediate conclusion supported by the evidence.

C.The first is an intermediate conclusion that forms part of the reasoning called into question by the argument; the second is evidence that undermines the support for this intermediate conclusion.

D.The first is an intermediate conclusion that forms part of the reasoning called into question by the argument; the second is the main conclusion of the argument.

E.The first is an intermediate conclusion that forms part of the reasoning called into question by the argument; the second states a further conclusion supported by this intermediate conclusion.

Could you please identify what the ans is here and why ?

Since it has become known that several of a bank's top executives have been buying shares in their own bank, the bank¡¯s depositors, who had been worried by rumors that the bank faced impending financial collapse, have been greatly relieved. They reason that since top executives evidently have faith in the bank's financial soundness, those worrisome rumors must be false. They might well be overoptimistic, however since corporate executives have sometimes bought shares in their own company in a calculated attempt to dispel negative rumors about the company's health.


Sorry, the BF is identified above.

I have never seen, on an official question, answer choices that require us to distinguish between "summarizes the evidence" and "an intermediate conclusion." Those two things are too close together; this question is not sufficiently GMAT-like.

A, C and E are wrong based upon the second half of each choice. I'd probably go with D here simply because the statement that they "might well be overoptimistic" is chronologically the last in a chain of events, so it qualifies as the final conclusion. But, really - I wouldn't actually study this one.

_________________
Stacey Koprince
Instructor
Director of Online Community
ManhattanGMAT

But the answer to the question is A. My answer to the question was also D but the second statement gives the explaination for some thing which the author is saying might be possible and hence it can not be taken as a conclusion.

Sorry, but A is just flat out wrong. The second part of A states that the second boldface is evidence; here is the second boldface:

They might well be overoptimistic;

This is not evidence. Evidence is something factual, such as research or an actual event. This boldface is clearly an opinion, which cannot be characterized as evidence.

Sorry, but as Stacey pointed out, this is a poor question and should not be used as preparation for the GMAT.

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Jamie Nelson
ManhattanGMAT Instructor