Strengthen with Necessary Premise Questions - - Question 36

The government provides insurance for individuals' bank deposits, but requires the banks to pay the premiums for this...

sangagul1234ah@gmail.com October 2, 2021

simplifying the answer choice

I had a hard time understanding this answer choice because of how convoluted it was. I had guessed on this question because none of the others made sense either. How can I simplify answer choices like this to get a better understanding?

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grysngh November 11, 2021

@lsatmax This would help aswell!

Krystal November 28, 2021

Same.... I don't understand what the answer choice meant so I did not choose it...

Ravi February 13, 2022

This is a strengthen with necessary premise question, so we can use the negation test to find the correct answer choice. The correct choice, when negated, will destroy the original argument.

In looking at C, its negation would be "Banks always cover the cost of the deposit insurance premiums by paying depositors lower interest on insured deposits than the banks would on uninsured deposits."

The thing with the negation is that if we know that banks already cover the cost with reduced interest rates, then the depositors are already indirectly paying for insurance. Thus, C's negation destroys the argument, so we know that C in its original form is necessary in order for the argument to stand any chance of making sense.