The government provides insurance for individuals' bank deposits, but requires the banks to pay the premiums for this...
CECJune 13, 2024
Why does the answer make sense?
I don't understand what the answer choice has to do with the underlying
"assumption" that the argument takes. Is this question miswritten (is it supposed to be a "what would make this argument stronger" question?)
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The entire argument is predicated on the idea that the banks pay the insurance, rather than depositors. The author must therefore assume C is true: if banks did pass this cost on to depositors, then individuals would be bearing the cost of insurance, which undermines a key premise of the authors argument.
