Princeton CAT

Princeton Review CAT 3

Every time a business grants financial credit to an individual, the business assumes risk.In order to evaluate the risk, a business must have correct information about that individual's financial history. It is true that credit bureaus, which compile such information from computerized records, have been accused of invading the consumer's right to privacy. If, however, only limited restrictions are placed on the availability of such information to businesses, those businesses will be able to reduce their overall exposure to risk by giving credit only to people with good credit ratings while at the same time extending larger amounts of credit to more people. This way credit bureaus can, in fact, prevent the foolhardy consumer from becoming seriously overextended.

In the passage above, the author assumes which of the following:

A. It is difficult to quantify the risk involved in any single decision to grant credit.

B. Without the service provided by credit bureaus, businesses would have no factual basis for making credit decisions.

C. The financial data that credit bureau supply to businesses is generally accurate.

D. It is difficult to reduce the complexities of an individual's financial history to a computerized record.

E. Consumers, in general, tend to seek more credit than they can safely assume.

Question:

Answer is C. Look at Princeton's explanation of B.

No. "No factual basis" is extreme. Is the author assuming, for instance, that the businesses wouldn't have the applicant's name, or age, or address?

如何理解 B 的解释？我认为，如果没有factual basis的话 business 怎么能找到新的评据呢？明明是 weaken 么。 请教！！

谢了先。

B. Without the service provided by credit bureaus, businesses would have no factual basis for making credit decisions.

okay, this is not what the author assumed, 'cause this is saying "if the service provided by the credit bureaus doesn't exist, which means now the business would have to make the decision on their own, and they have NO FACTUAL BASIS for making credit decisions", even if the service doesn't exist, business still has an idea of what the individual's job is like, his age, blah blah, B says if this service is not there, then the business would have absolutely no infomration for making credit decisions, that is clearly not what the author is assuming

... seems so, but ...    I need to digest your explaination.

Thanks, tiger1~4.