Which of the following, if true, undermines Ryerson’s argument? A) So

QUESTION

Which of the following, if true, undermines Ryerson’s argument?

A) Some companies have stock that grows in value.
B) The stock market sometimes falls in overall value.
C) Savings interest rates are not as high as those of some stocks.
D) Savings interest rates can be lower than the rate of inflation.
E) Savings accounts can be opened only with a minimum balance.

ANSWER

Answer: D
Explanation: D) Ryerson claims that one cannot lose money in a savings account, but one’s savings would lose overall value if the rate of inflation over time outpaced the interest one earned in the savings account. Ryerson does not claim that no stock ever gains value over time (Choice A) or that the stock market doesn’t sometimes fall (Choice B), but only that the uncertainty of guessing whether certain stocks or the overall market will gain value makes it too risky. He does not claim that savings interest rates are higher than stock gains (Choice C), but only that they are much more reliable. Opening balance requirements on savings accounts are not relevant (Choice E).