hard · LSAT Logical Reasoning
Financial advisor: A truly secure investment is one that cannot lose value under any circumstances. Government bonds are widely marketed as secure investments. But since inflation can erode the real purchasing power of a government bond's fixed payout, no government bond can be a truly secure investment. Therefore, marketing government bonds as 'secure' is always misleading to investors.
The financial advisor's argument is most vulnerable to criticism on the grounds that it
- fails to consider that inflation rates fluctuate unpredictably across different economic conditions
- trades on two senses of 'secure,' shifting from a strict guarantee to the ordinary marketing sense
- takes for granted that every bond buyer is entirely unaware of inflation risk
- overlooks that some bonds offer inflation-adjusted payouts that offset any loss in purchasing power
- presumes government bonds are the only product ever marketed to investors as 'secure'
Sign up free to see the explanation and track your rank →
More LSAT Logical Reasoning practice
- Which one of the following is an assumption required by the argument?
- Which one of the following can be properly inferred from these statements?
- The question type just described is best identified as which one of the following?
- The reasoning in the argument is flawed in that the argument
- The reasoning in the argument is flawed because the argument
- Which one of the following most accurately describes the relationship the statement establ
- Which one of the following can be validly inferred from the two conditionals above?
- Which one of the following must be true given the statement above?