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Why is the answer C? It doesn't seem to be assumed at all.

My take: The argument is that people who deposit money should bear the cost of insuring it. In choice C, the author assumes that banks aren't already passing the costs onto depositors by paying less interest on insured deposits. If they were, the argument wouldn't work.

Don't have this test, but I do have a piece of advice for you. This close to the test, there is no way you should be doing tests before 40. While the LSAT hasn't changed monumentally over the years, it has changed in enough respect to render the earliest tests useless in preparing so close to the real thing.

I'm taking the October test, not the June.

innocent_se wrote:I'm taking the October test, not the June.

My apologies, carry on

JDSprintz wrote:My take: The argument is that people who deposit money should bear the cost of insuring it. In choice C, the author assumes that banks aren't already passing the costs onto depositors by paying less interest on insured deposits. If they were, the argument wouldn't work.

Isn't choice C assuming that banks are already passing the costs onto depositors by paying less interest on insured deposits? "do not always cover the cost of the deposit-insurance premiums"

Choice C says that "Banks do NOT always cover the cost of the deposit-insurance premiums by paying depositors lower interest rates......" So I think it's assuming that banks aren't already passing those costs on.

Oh, I see.

I was reading it as "Banks do not cover cost, by paying..."

Yeah, I read it like that at first too. The wording was kind of weird.