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Sentence Completion
1. People seem to recall the brand of an advertised product,
considering most favorably the most frequently advertised product;
therefore, an advertisement that is----in newspaper advertisement
would be expected to be very----, but, actually, it is not.
(A) dominant.. impressive
(B) frequent.. bad
(C) unusual.. effective
(D) new.. rare
(E) widespread.. ineffective
Explanation: The first part of the sentence is a statement:
the more frequent an advertisement is, the more favorable it is
considered. The word “therefore" suggests that the missing words
must, together, make a statement in keeping with this assumption.
A is the correct answer. An advertisement that is “dominant" is
very frequent. Because, according to the statement, the most
frequent advertisement is likely to be most favorably considered,
one would expect a “dominant" advertisement to be very
“impressive?
2. Just as human beings who depend on each other, there are no
------- foliages.
(A) neglectable
(B) existing
(C) conventional
(D) dependable
(E) solitary
Explanation: The phrase “just as" means a similar way.
Since human beings depend on each other, the foliages should also
depend on each other, or are not solitary. Therefore, the best
answer is E.
3. The blueprints for the new automobile were ----at first glance.
but the designer had been basically too conservative to ----
previous standards of beauty.
(A) striking.. flout
(B) impractical.. ignore
(C) impeccable.. dispel
(D) influential ..assess
(E) confusing.. incorporate
Explanation: The best answer is A.
4. Because its average annual rainfall is only about four
inches, one of the major tasks faced by the country has been to
find ----sources of water.
(A) discontinuous
(B) natural
(C) supplementary
(D) pervasive
(E) initial
Explanation: The best answer is C.
5. Because the order in which the parts of speech appear in the
sentences of a given language is decided merely by custom, it
is---- to maintain that every departure from that order
constitutes a ----of a natural law.
(A) traditional.. transformation
(B) conventional.. transgression
(C) necessary.. prototype
(D) unjustifiable.. violation
(E) unreasonable.. formulation
Explanation: The best answer is D.
Reading Comprehension
The function of capital markets is to facilitate an exchange of
funds among all participants, and yet in practice we find that
certain participants are not on a par with others. Members of
society have varying degrees of market strength in terms of
information they bring to a transaction, as well as of purchasing
power and creditworthiness, as defined by lenders.
For example, within minority communities, capital markets do
not properly fulfill their functions; they do not provide access
to the aggregate flow of funds in the United States. The financial
system does not generate the credit or investment vehicles needed
for underwriting economic development in minority areas. The
problem underlying this dysfunction is found in a rationing
mechanism affecting both the available alternatives for investment
and the amount of financial resources. This creates a distributive
mechanism penalizing members of minority groups because of their
socioeconomic differences from others. The existing system
expresses definite socially based investment preferences that
result from the previous allocation of income and that influence
the allocation of resources for the present and future. The system
tends to increase the inequality of income distribution. And, in
the United States economy, a greater inequality of income
distribution leads to a greater concentration of capital in
certain types of investment.
Most traditional financial-market analysis studies ignore
financial markets' deficiencies in allocation because of analysts'
inherent preferences for the simple model of perfect competition.
Conventional financial analysis pays limited attention to issues
of market structure and dynamics, relative costs of information,
and problems of income distribution. Market participants are
viewed as acting as entirely independent and homogeneous
individuals with perfect foresight about capital-market behavior.
Also, it is assumed that each individual in the community at large
has the same access to the market and the same opportunity to
transact and to express the preference appropriate to his or her
individual interest. Moreover, it is assumed that transaction
costs for various types of financial instruments (stocks, bonds,
etc.) are equally known and equally divided among all community
members.
6. The main point made by the passage is that
(A) financial markets provide for an optimum allocation of
resources among all competing participants by balancing supply and
demand
(B) the allocation of financial resources takes place among
separate individual participants, each of whom has access to the
market
(C) the existence of certain factors adversely affecting members
of minority groups shows that financial markets do not function as
conventional theory says they function
(D) investments in minority communities can be made by the use of
various alternative financial instruments, such as stocks and
bonds
(E) since transaction costs for stocks, bonds, and other other
financial instruments are not equally apportioned among all
minority-group members, the financial market is subject to
criticism
Explanation: This question asks you to identify the main
point that is conveyed by the passage. C is the best answer. The
overarching message of the passage is that certain factors
affecting minority communities are essentially ignored in
conventional financial-market analyses. Choice A is not correct
because the passage does not discuss issues of supply and demand.
Both B and D present a general claim about issues mentioned in the
passage, but neither statement expresses the main point of the
passage. Choice E can be eliminated because while the passage does
criticize certain aspects of the financial market, it is chiefly
concerned with differences between minority and non-minority
communities, not with any differences among minority-group
members.
7. The passage states that traditional studies of the financial
market overlook imbalances in the allocation of financial
resources because
(A) an optimum allocation of resources is the final result of
competition among participants
(B) those performing the studies choose an oversimplified
description of the influences on competition
(C) such imbalances do not appear in the statistics usually
compiled to measure the market’s behavior
(D) the analysts who study the market are unwilling to accept
criticism of their methods as biased
(E) socioeconomic difference form the basis of a rationing
mechanism that puts minority groups at a disadvantage
Explanation: This question asks you to identify an
explicit claim made in the passage about traditional
financial-market studies. The best answer is B because the passage
states that most studies are affected by analysts' preference for
simplicity in their models. Choice A is incorrect because the
passage does not suggest that competition eventually results in an
optimum allocation of resources. While the statements in C and D
could be true, they do not express claims presented in the
passage. Choice E can be eliminated: although the passage does
make a similar point about rationing mechanisms, it does not do so
in explanation of alleged flaws in financial-market analyses.
8. The author’s main point is argued by
(A) giving examples that support a conventional generalization
(B) showing that the view opposite to the author’s is
self-contradictory
(C) criticizing the presuppositions of a proposed plan
(D) showing that omissions in a theoretical description make it
inapplicable in certain cases
(E) demonstrating that an alternative hypothesis more closely fits
the data
Explanation: This question asks you to identify the
answer that best captures the author’s approach to the main
argument presented in the passage. Choice D is the best answer. In
constructing an argument about flaws in conventional
market-analysis models, the author focuses on various factors that
are typically ignored-that is, omitted-in those models. Choice A
can be eliminated because the author is arguing against a
conventional viewpoint, not in favor of one. Choice B is incorrect
because the author characterizes the opposing point of view as
flawed in certain respects, but does not claim that the view is
self-contradictory. Choices C and E are incorrect because there is
no proposed plan discussed in the passage, nor is an alternative
hypothesis offered.
9. A difference in which of the following would be an example
of inequality in transaction costs as alluded to in lines 40-43?
(A) Maximum amounts of loans extended by a bank to businesses in
different areas
(B) Fees charged to large and small investors for purchasing
stocks
(C) Prices of similar goods offered in large and small stores in
an area
(D) Stipends paid to different attorneys for preparing legal suits
for damages
(E) Exchange rates in dollars for currencies of different
countries
Explanation: To answer this question correctly you must
choose the answer that most clearly offers an example of the
phenomenon alluded to in lines 40-43. Note that the question asks
you to consider what it would mean if there were differences in
what is described in the answer choices. The best answer is B. A
fee to purchase stock is a transaction cost, and stock is
mentioned in the passage as an example of type of financial
instrument. Differences in fees charged to buy stock would thus be
an example of inequality in transaction costs for financial
instruments. Choices A, C, And E are not correct because amounts
of loans, prices of goods, and exchange rates would not be
considered transaction costs for financial instruments. Choice D
is incorrect while a stipend paid for a service might be
considered a type of transaction cost, this choice does not
describe a transaction cost involving the purchase or sale of
financial instruments.
10. Which of the following can be inferred about minority
communities on the basis of the passage?
(A) They provide a significant portion of the funds that become
available for investment in the financial market.
(B) They are penalized by the tax system, which increases the
inequality of the distribution of income between investors and
wage earners.
(C) They do no receive the share of the amount of funds available
for investment that would be expected according to traditional
financial-market analysis.
(D) They are not granted governmental subsidies to assist in
underwriting the cost of economic development
(E) They provide the same access to alternative sources of credit
to finance businesses as do majority communities.
Explanation: This question asks you to use information
provided in the passage in order to draw an inference about
minority communities. Choice C is the best answer. According to
the passage, traditional financial-market analysis assumes equal
access to the market for all participants; according to the
author, however, minority communities do not have equal access to
the market. Thus it may be inferred that while traditional
analysis assumes that all communities will receive their share of
available funds, in reality those funds are disproportionately
allocated to majority communities. Choices A and B are incorrect
because the passage does not discuss either the origins of funds
available for investment any tax penalties that may be incurred by
certain investors. While this statement in D could be true, there
is not enough information provided in the passage to support such
an inference. Choice E is incorrect because the passage does not
assert or suggest that equal access to any sources of credit is
provided in minority communities.
11. According to the passage, a questionable assumption of the
conventional theory about the operation of financial markets is
that
(A) creditworthiness as determined by lenders is a factor
determining market access
(B) market structure and market dynamics depend on income
distribution
(C) a scarcity of alternative sources of funds would result from
taking socioeconomic factors into consideration
(D) those who engage in financial-market transactions are
perfectly well informed about the market
(E) inequalities in income distribution are increased by the
functioning of the financial market
Explanation: This question asks you to identify a claim
about conventional financial-market theory that is made explicitly
in the passage. The best answer is choice D. The author points out
his assumption within the context of criticizing the conventional
theory about financial markets. Choice A is not correct because
creditworthiness is mentioned in the first paragraph of the
passage, but not in the context of assumptions made in
conventional theory. Choices B and C can be eliminated: with
regard to the consideration of income distribution, the passage
states only that conventional analysis tends to pay little
attention to the topic. Choice C is incorrect because the passage
does not mention any assumption on the part of conventional theory
with regard to the consequence of considering socioeconomic
factors.
12. According to the passage, analysts have conventionally
tended to view those who participate in financial market as
(A) judging investment preferences in terms of the good of society
as a whole
(B) influencing the allocation of funds through prior ownership of
certain kinds of assets
(C) varying in market power with respect to one another
(D) basing judgments about future events mainly on chance
(E) having equal opportunities to engage in transactions
Explanation: This question asks you to identify a claim
made in the passage about the conventional viewpoint of financial
market analysts. The best answer is E. The passage states that
conventional financial analysis has assumed that all market
participants have the same access to the market and the same
opportunity to make transactions in the markets. Choice A is
incorrect because the passage does not suggest that analysts have
traditionally assumed any attention to societal good on the part
of market participants. Choice B can be eliminated because the
effect of prior allocation of funds is mentioned in the second
paragraph (lines 8-14), prior to any discussion of traditional
financial market analysis. Both C and D contradict a claim made in
the passage about conventional financial market analysis. First,
conventional analysis is said to assume that all participants have
equal access, not varying market power. Second, conventional
analysis is said to assume that market participants act with
perfect foresight about capital-market behavior, not that they
rely on chance.
(The following is based on material written in 1996.)
The Montreal Protocol on Substances that Deplete the Ozone Layer,
signed in 1987 by more than 150 nations, has attained its
short-term goals: it has decreased the rate of increase in amounts
of most ozone-depleting chemicals reaching the atmosphere and has
even reduced the atmospheric levels of some of them. The
projection that the ozone layer will substantially recover from
ozone depletion by 2050 is based on the assumption that the
protocol’s regulations will be strictly followed. Yet there is
considerable evidence of violations, particularly in the form of
the release of ozone-depleting chlorofluorocarbons (CFC’s), which
are commonly used in the refrigeration, heating, and air
conditioning industries. These violation reflect industry
attitudes; for example, in the United States, 48 percents of
respondents in a recent survey of subscribers to Air Conditioning,
Heating, and Refrigeration News, and industry trade journal, said
that they did not believe that CFC’s damage the ozone layer.
Moreover, some in the industry apparently do not want to pay for
CFC substitutes, which can run five times the cost of CFC’s.
Consequently, a black market in imported illicit CFC’s has grown.
Estimates of the contraband CFC trade range from 10,000 to 22,000
tons a year, with most of the CFC’s originating in India and
China, whose agreements under the Protocol still allow them to
produce CFC’s. In fact, the United States Customs Service reports
that CFC-12 is a contraband problem second only to illicit drugs.
13. According to the passage, which of the following best
describes most ozone-depleting chemicals in 1996 as compared to
those in 1987?
(A) The levels of such chemicals in the atmosphere had decreased.
(B) The number of such chemicals that reached the atmosphere had
declined.
(C) The amounts of such chemicals released had increased but the
amounts that reached the atmosphere had decreased.
(D) The rate of increase in amounts of such chemicals reaching the
atmosphere had decreased.
(E) The rate at which such chemicals were being reduced in the
atmosphere had slowed.
Explanation: This question asks you to identify a claim
that is made in the passage about ozone-depleting chemicals. The
best answer is D. The passage, written in 1996, states that the
rate of increase in amounts of most ozone-depleting chemicals
reaching the atmosphere had been reduced since 1987. Choice A can
be eliminated because the passage states that the atmospheric
levels of some ozone-depleting chemicals had been reduced, not
that the levels of most had been reduced. Choice B is incorrect
because the actual number of different chemicals reaching the
atmosphere is not provided in the passage, nor is it claimed that
the number had declined. Choice C is not correct because the
passage does not claim that there was an increase in the amounts
of ozone-depleting chemicals released between 1987 and 1996.
Choice E is incorrect because there is no indication in the
passage that the rate of reduction of atmospheric chemicals had
slowed between 1987 and 1996.
14. The author of the passage compares the smuggling of CFC’s
to the illicit drug trade most likely for which of the following
reasons?
(A) To qualify a previous claim
(B) To emphasize the extent of a problem
(C) To provide an explanation for an earlier assertion
(D) To suggest that the illicit CFC trade, likely the illicit drug
trade, will continue to increase
(E) To suggest that the consequences of a relatively little-knows
problem are as serious as those of a well-known one
Explanation: This question asks you to identify the
purpose of the author’s comparison of CFC smuggling and the
illicit drug trade. The best answer is B. The author notes that
the smuggling of CFC’s is, in the view of the United States
Customs Service, a problem “second only" to the illicit drug
trade. This provides a point of reference that emphasizes the
extent of the CFC smuggling problem. Choice A is not correct To
qualify a claim is to weaken or soften it. The author’s comparison
of CFC smuggling to the illicit drug trade in fact underscores the
previous claim, which ahs to do with the amount of contraband
CFC’s traded each year on the black market. Choice C is not
correct because the comparison of CFC smuggling to the illicit
drug trade does not provide an explanation for an assertion made
in the passage. Choices D and E are not correct because the
comparison of CFC smuggling to the illicit drug trade illustrates
the extent of the CFC smuggling problem, but does not suggest
further similarities between the two phenomena, such as the
likelihood of their increase. The author also does not express any
opinion as to the relative seriousness of the two problems'
consequence.
15. The passage suggests which of the following about the
illicit trade in CFC’s?
(A) It would cease if manufacturers in India and China stopped
producing CFC’s.
(B) Most people who participate in such trade do not believe that
CFC’s deplete the ozone layer.
(C) It will probably surpass illicit drugs as the largest
contraband problem faced by the United States Custom Services.
(D) It is fostered by people who do not want to pay the price of
CFC substitutes.
(E) It has grown primarily because of the expansion of the
refrigeration, heating, and air-conditioning industries in foreign
countries.
Explanation: The question asks what the passage implies
about the illicit trade in CFC’s. The best answer is D. The
passage states that some industry members appear not to want to
pay the price of CFC substitutes, and that consequently a black
market in cheaper CFC’s has emerged. This implies that the black
market is fostered at least in part by those industry members who
are unwilling to pay the higher price of CFC substitutes. Choice A
can be eliminated because the passage states only that most
contraband CFC’s originate in India and China. This does not imply
that the illicit trade in CFC’s could not continue without
manufacturers in those countries. Choice B is not correct because
the passage does not provide information about the beliefs of
participants in the illicit CFC trade. Choice C is incorrect
because the passage states only that the United States Customs
Service considers the illicit CFC trade to be a problem second
only to the illicit drug trade:; there is no suggestion in the
passage that the illicit CFC trade is expected to develop into a
larger problem than the illicit drug trade. Choice E is incorrect
because the passage attributes the growth of the illicit trade in
CFC’s to the high cost of CFC substitutes, not to an expansion of
refrigeration, heating, and air-conditioning industries in foreign
countries.
Analogy
16. ASSUAGE : SORROW ::
(A) retaliate : antipathy
(B) dampen : ardor
(C) entrust : reliability
(D) counsel : reluctance
(E) withhold : appreciation
Explanation: To “assuage" means to lessen the intensity
of, or to relieve, something like pain or “sorrow" A rationale
for this analogy could be " to X means to lessen the intensity of
a feeling such as Y" To “dampen" can mean to diminish
the intensity of a feeling such as “ardor"
Answer: B
17. DIE : SHAPING ::
(A) glue : attaching
(B) anchor : sailing
(C) drill : boring
(D) pedal : propelling
(E) ink : printing
Explanation: “Die" has several meanings, but its use
with “shaping" suggests that here it should be taken to mean a
tool used to form an object. This definition suggests that a
rationale for this analogy could be " X is a tool used for Y,
where Y is done to something else. " A “drill" is a tool used for “boring" making
holes by piercing).
Answer: C
18. PERFUNCTORILY : INSPIRATION ::
(A) insolently : veneration
(B) ardently : passion
(C) phlegmatically : composure
(D) surreptitiously : obsession
(E) haltingly : reluctance
Explanation: Something done “perfunctorily" is done in a
mechanical or superficial manner, without enthusiasm or
“inspiration" A rationale for this analogy could be “A person
performing in a manner described as X is acting without feeling Y."
a person who does something “insolently" arrogantly or
insultingly) does not feel “veneration" One who feels admiration
or reverence does not behave arrogantly.
Answer: A
19. FAWN : IMPERIOUSNESS ::
(A) equivocate : directness
(B) elaborate : originality
(C) boggle : imagination
(D) manipulate : repression
(E) coddle : permissiveness
Explanation: To “fawn" means to court favor in a
cringing or flattering manner. One who fawns is not characterized
by “imperiousness" arrogance, or a commanding presence). A
rationale for this analogy could be “to X is to show a lack of Y"
To “equivocate" means to lie or deceive, and shows a lack of
“directness"
Answer: A
20. CLOT : DISSOLVED ::
(A) enthusiast : influenced
(B) carton : distorted
(C) crowd : dispersed
(D) chain : disengaged
(E) disciple : inspired
Explanation: A “clot" (a mass created when the
components of something stick together) ceases to be a “clot" when
it is “dissolved." A rationale for this analogy could be “an X
ceases to be an X when it is Y (that, is, when it has undergone
the particular process of being Y)." if a “crowd" is “dispersed,"
it is no longer a “crowd," but a number of separate individuals.
Answer: C
21. STUDY : LEARN ::
(A) pervade : encompass
(B) search : find
(C) gather : win
(D) agree : keep
(E) accumulate : raise
Explanation: People “study" in order to “learn"
Therefore, a rationale for this analogy could be “People X (study)
in order to Y (learn)," or “one way to y (learn) is to X (study)."
People “search" in order to “find" one way to “find"
something is to “search for it"
Answer: B
22. APPLE : FRUIT ::
(A) egg : chicken
(B) rung : chair
(C) wool : fabric
(D) fuse : dynamite
(E) wick : candle
Explanation: An “apple" is a kind of “fruit" A
rationale for this analogy could be “X is a kind of Y" “Wool"
is the name of a kind of “fabric"
Answer: C
Antonym
23. BOISTEROUS:
A. grateful
B. angry
C. clever
D. frightened
E. quiet
Explanation: “Boisterous" means noisy and high spirited.
It implies activity as well as noise. E is the correct answer.
“Quiet" can imply low levels of both noise and activity. To be
“grateful" means to appreciate something. Expressing appreciation
is not necessarily associated with particular levels of noise or
activity. One who is “angry" might be, but is not necessarily,
quiet. To be “clever" means to be quick-witted or resourceful. It
does not imply a level of activity or of feeling. A “frightened"
person might not behave boisterously, but there is not, by
definition, a connection between the two.
24. JABBER:
A. tickle
B. argue
C. stroke
D. speak slowly
E. joke inaptly
Explanation: To “jabber" means to speak so rapidly as to
be unintelligible. D is the correct answer. To “speak slowly" is
the opposite of speaking rapidly. To “tickle" means to excite in a
pleasant way. It is different from jabbering in that it involves
touch rather than verbal communication, but tickling is not the
opposite of jabbering. To ‘argue" means to dispute or to give
reasons for something. It refers to the content rather than to the
manner of speech and so cannot be the opposite of “jabber." To
“stroke" means to rub gently. It is different from jabbering in
that it involves touch rather than verbal communication, but
stroking is not the opposite of jabbering. To “joke inaptly" means
to make inappropriate jests. It does not refer to the speed or
intelligibility of speech.
25. AMALGAMATE:
A. separate
B. fixate
C. terminate
D. calibrate
E. correlate
Explanation: To “amalgamate" means to mix together or
unite. A is the correct answer. To “separate" means to disunite.
To “fixate" means to gaze steadily at something. To “terminate"
means to put an end to or to come to an end. It does not
necessarily imply dissolution. To “calibrate" means to adjust, as
the markings on an instrument. To “correlate" means to show a
relationship to something else.
26. ENDORSE:
A. provoke criticism
B. receive payment
C. submit unwillingly
D. oppose publicly
E. perform quickly
Explanation: One meaning of “endorse" is to approve of
something. It implies attaching one’s name to an indication of
approval, such as a statement. D is the correct answer. To “oppose publicly" is the opposite of lending one’s name in approval. To
“provoke criticism" means to cause someone to criticize, rather
than to express disapproval. “Endorse" can mean to sign, as one
would sign a check, in order to “receive payment," but endorsement
is a step in a process of receiving payment, and not its opposite.
To “submit unwillingly" may or may not suggest disapproval.
“Endorse" does not suggest coercion or the absence of coercion, so
to “submit unwillingly" is too specific to be the opposite of the
more general “endorse" To “perform quickly" does not imply
approval or disapproval.
27. GIST:
A. artificial manner
B. trivial point
C. informal procedure
D. eccentric method
E. singular event
Explanation: The “gist" (of an argument, for instance,)
is the main, or most important, point. B is the correct answer. A
“trivial point" is an unimportant one. An “artificial manner" is
an affected or unnatural way of behaving, rather than a part of an
argument or discussion. An “informal procedure" is a method of
operation that is not rigidly specified. There is no reason to
suppose that it is no reason to suppose that it is unrelated to
the main point. An “eccentric method" is a way of operating that
is peculiar to a person or group. There is no reason to suppose
that it is unrelated to the main point. A “singular event" is an
occurrence that is individual or unusual. There is no reason to
suppose that it is unrelated to the main point.
28. ANARCHY:
A. courtesy
B. hope
C. order
D. neutrality
E. importance
Explanation: “Anarchy" means absence of order. C is the
correct answer. “Order" is the opposite of a lack of order. A lack
of “courtesy" might well accompany a state of “anarchy," but this
lack is not implied in the definition of “anarchy." “Hope" is an
emotion, and not a state. It may or may not accompany “anarchy,"
but it is not the opposite of “anarchy" “Neutrality," like
“anarchy," can be a political state, but it does not necessarily
imply orderliness. “Importance" is a quality that does not
directly or necessarily have to do with order or the lack of it.
29. BREACH:
A. garner
B. solder
C. keep silent
D. move forward
E. give approval
Explanation: To “breach" means to break or to break into
something. You can tell from the answer choices that “breach" is
used as a verb, not as a noun. B is the correct answer. To
“solder" is to unite parts or to mend a break. To “garner" is to
gather. To “keep silent" is to refrain from speaking or making
noise. To “move forward" is to go ahead or to make progress. To
“give approval" is to express a favorable opinion.
30. EXTANT:
A. extensive
B. extraneous
C. extricable
D. extinct
E. extra
Explanation: “Extant" means still existing. It may refer
to living things, or to documents or other inanimate objects. D is
the correct answer. “Extinct" means, in the case of an animal or
kind of animal, no longer existing or living. To be “extensive"
means to cover a large area. Something that is “extensive" must
still exist. “Extraneous" means inessential, but it does not imply
nonexistence. Something “extricable" can be removed or
disentangled. Such a thing is not nonexistent. “Extra" means
additional. It may imply unimportance, but it does not imply
nonexistence.
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