Which of the following assumptions does Ryerson have to make to suppor

QUESTION

Which of the following assumptions does Ryerson have to make to support his statements?

A) Some people make money by investing.
B) Interest is the only thing that changes the value of a savings account.
C) Most people want to save money instead of spending it.
D) Companies issue stock only if there is no other way to make money.
E) There are few companies whose stock always grows in value.

ANSWER

Answer: B
Explanation: B) Ryerson assumes that money in a savings account can grow only through interest and that no other factors affect its value. Ryerson concedes that some people may make money through investing (Choice A), but if that were false, it would not affect his argument. He does not need to assume that most people want to save (Choice C), as his argument is trying to establish that such is a good thing. Ryerson is not assuming that companies issue stocks (Choice D) only because they have no other choice, and he does not assume that no companies have stocks that grow in value (Choice E)—only that it is too risky to try to choose which companies will have such stocks.