140. Declining values for farm equipment and land, the collateral against which farmers borrow to get through the harvest season, is going to force many lenders to tighten or deny credit this spring.
(A) the collateral against which farmers borrow to get through the harvest season, is
(B) which farmers use as collateral to borrow against to get through the harvest season, is
(C) the collateral which is borrowed against by farmers to get through the harvest season, is
(D) which farmers use as collateral to borrow against to get through the harvest season, are
(E) the collateral against which farmers borrow to get through the harvest season, are
The key is E but the confusion in this problem is the agreement between the subject, Declining values, and the verb, are. In the OG's explanation, the subject is " values" . What is the declining's function in this sentence. Declining is adjective? (I can not find it out in the dictionary.) Thanks a lot!
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