30 LR One Question 15
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Just want to confirm that I've understood the question and answer correctly by modeling, as best I can, a close variation of your suggested method for practicing LR questions:
Type: Necessary Assumption
Argument: Banks loaned less money during the economic downturn, because prior to the economic downturn, regulatory standards were tightened.
Expectation: The answer should eliminate alternative explanation(s), because if an alternative explanation(s) exist(s), then the argument above is false, because the argument attributes the lack of bank lending exclusively (and more broadly) to tight regulatory standards.
Answer Choice A: The downturn itself was not responsible for banks loaning less money through the decrease of money on deposit (the source of funds for banks to lend).
Why is A correct? Apply the negate test: If the downturn itself WAS responsible for banks loaning less money through the decrease of money on deposit (source of funds for banks to lend), then banks did NOT loan less money during the economic downturn due to tightened regulatory standards before the downturn. There is, then, an alternative reason as to why banks loaned less money during the downturn. This would thus prove the argument false, making answer choice a a necessary assumption.
