G2020每日閱讀訓練練習D33

Pistachio_lin · 发表于 2022-4-12 21:24:07

Hi 大家好，閱讀打卡第33天。

Materials: OG2020

Passages:

Historians remain divided over the role of banks in facilitating economic growth in the United States in the late eighteenth and early nineteenth centuries. Some scholars contend that banks played a minor role in the nation’s growing economy. Financial institutions, they argue, appeared only after the economy had begun to develop, and once organized, followed conservative lending practices, providing aid to established commercial enterprises but shunning those, such as manufacturing and transportation projects, that were more uncertain and capital-intensive (i.e., requiring greater expenditures in the form of capital than in labor).
A growing number of historians argue, in contrast, that banks were crucial in transforming the early national economy. When state legislatures began granting more bank charters in the 1790s and early 1800s, the supply of credit rose accordingly. Unlike the earliest banks, which had primarily provided short-term loans to well-connected merchants, the banks of the early nineteenth century issued credit widely. As Paul Gilje asserts, the expansion and democratization of credit in the early nineteenth century became the driving force of the American economy, as banks began furnishing large amounts of capital to transportation and industrial enterprises. The exception, such historians argue, was in the South; here, the overwhelmingly agrarian nature of the economy generated outright opposition to banks, which were seen as monopolistic institutions controlled by an elite group of planters.思路/簡化: Historians remain divided over the role of banks in facilitating economic growth in theUnited States in the late eighteenth and early nineteenth centuries.

(two different views regarding the role of banks in facilitating economic growth.)

Some scholars contend that banks played a minor role in the nation's growing economy.

(1st view: banks played a minor role)

Financial institutions, they argue, appeared only after the economy had begun to develop, and once organized, followed conservative lending practices, providing aid to established commercial enterprises but shunning those, such as manufacturing and transportation projects, that were more uncertain and capital-intensive (ie, requiring greater expenditures in the form of capital than in labor).

(Reason why banks played a minor role. - banks were more risk-averse to uncertain and captial-intensive)

A growing number of historians argue, in contrast, that banks were crucial in transforming the early national economy.

(2nd view: banks were crucial. This view is oppose to 1st view)

When state legislatures began granting more bank charters in the 1790s and early 1800s, the supply of credit rose accordingly.

(Explanation why banks are important - supploy of credit rose accordingly)

Unlike the earliest banks, which had primarily provided short-term loans to well-connected merchants, the banks of the early nineteenth century issued credit widely.

(Comparison: the banks that began after state legislatures approved to operate versus the earliest bank. The former issued credit widely)

As Paul Gilje asserts, the expansion and democratization of credit in the early nineteenth century became the driving force of the American economy, as banks began furnishing large amounts of capital to transportation and industrial enterprises.

(Paul's view on the role of banks - contributors to the driving force of the economy - and the fields in which the economy boomed)

The exception, such historians argue, was in the South; here, the overwhelmingly agrarian nature of the economy generated outright opposition to banks, which were seen as monopolistic institutions controlled by an elite group of planters.

(The South part was excluded from the boom and the reason - negative perception against the fundement of banks)

Structure:1. two different views presented - the role of banks in faciliating economic growth.
- 1st view: banks played a minor role. - reason: why so
- 2nd view: banks were crucial in bringing up the early national economy. - supply of credit rose.
- how so differiates: credit was issued widely.
- real example: banks began furnishing large amounts of capital to transportation and industrial enterprises. - exception in which banks did not play a role in helping the economy. 1. The primary purpose of the passage is to

A. compare the economic role played by southern banks with the economic role played by banks in the rest of the United States during the late eighteenth and early nineteenth centuries
B. reevaluate a conventional interpretation of the role played by banks in the American economy during the late eighteenth and early nineteenth centuries
C. present different interpretations of the role played by banks in the American economy during the late eighteenth and early nineteenth centuries

(two different views presented - the role of banks in faciliating economic growth.)

D. analyze how the increasing number of banks in the late eighteenth and early nineteenth centuries affected the American economy
E. examine how scholarly opinion regarding the role played by banks in the American economy during the late eighteenth and early nineteenth centuries has changed over
2. The passage suggests that the scholars mentioned in line 4 would argue that the reason banks tended not to fund manufacturing and transportation projects in the late eighteenth and early nineteenth centuries was that

A. these projects, being well established and well capitalized, did not need substantial long-term financing from banks
B. these projects entailed a level of risk that was too great for banks' conservative lending practices

(Reason why banks played a minor role. - banks were more risk-averse to uncertain and captial-intensive)

C. banks preferred to invest in other, more speculative projects that offered the potential for higher returns
D. bank managers believed that these projects would be unlikely to contribute significantly to economic growth in the new country
E. bank managers believed funding these projects would result in credit being extended to too many borrowers3. The passage suggests that Paul Gilje would be most likely to agree with which of the following claims about the lending practices of the “earliest banks” (see line 21)?

A. These lending practices were unlikely to generate substantial profits for banks.
B. These lending practices only benefited a narrow sector of the economy.

(Comparison: the banks that began after state legislatures approved to operate versus the earliest banks who primarily provided short-term loans to well-connected merchants = established commercial enterprises; 也就是後面的這一些，就是一段文中說的那些不給manufacturing and transportation project資金的銀行)

C. The restrictive nature of these lending practices generated significant opposition outside of the South.
D. The restrictive nature of these lending practices forced state legislatures to begin granting more bank charters by the early nineteenth century.
E. These lending practices were likely to be criticized by economic elites as being overly restrictive.
4. The passage suggests that the opposition to banks in the South in the early nineteenth century stemmed in part from the perception that banks

A. did not benefit more than a small minority of the people

(The South part was excluded from the boom and the reason - negative perception against the fundement of banks)

B. did not support the interests of elite planters
C. were too closely tied to transportation and industrial interests
D. were unwilling to issue the long-term loans required by agrarian interests
E. were too willing to lend credit widely
5. Which of the following statements best describes the function of the last sentence of the passage?

A. It provides evidence tending to undermine the viewpoint of the scholars mentioned in line 5. (it actually underscores)
B. It resolves a conflict over the role of banks summarized in the first paragraph. (it supports the 1st view mentioned in the paragraph)
C. It clarifies some of the reasons state legislatures began granting more bank charters. (not mentioned)
D. It qualifies a claim made earlier in the passage about the impact of banks on the American economy in the early nineteenth century.

(yes!! a claim: banks play a minor role)

E. It supports a claim made earlier in the passage about how the expansion of credit affected the economy. (irrelevant)
以上分析，還請有想法的大大們不吝分享，謝謝。

[阅读小分队] G2020每日閱讀訓練練習D33

所属分类: GMAT考试

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