medium · LSAT Logical Reasoning

A regional bank recently increased the interest rates it offers on its savings accounts, expecting that this would attract a significant number of new depositors. However, in the three months following the rate increase, the bank saw a net decrease in the total amount of money held in its savings accounts.

Which one of the following, if true, most helps to resolve the apparent paradox?

  1. Opening any new savings account at the bank now requires that a prospective customer make an initial deposit of at least five hundred dollars.
  2. The bank's new rate, though higher than before, still falls slightly below the savings rate currently offered by its chief competitor.
  3. The bank spent a large share of its quarterly advertising budget publicizing the new and higher rates on local television and radio.
  4. Soon after the rate rose, a nationwide downturn forced many of the bank's existing customers to withdraw savings for basic living costs.
  5. The total savings on deposit fell so far that the bank now holds less money in those accounts than any other bank in the entire country.

Sign up free to see the explanation and track your rank →

More LSAT Logical Reasoning practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 75,000+ practice questions, 26,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials