VerbalLesson 1 of 1

Passage Analysis & Inference

Part 1 of 3

Reading Strategy & "Must Be True"

Before the passage: read all attached questions. Know what to look for.

During the passage: annotate mentally — where is the main claim? Where does it shift to a counterargument?

Answering inference questions: only what the passage directly states or clearly implies. No external knowledge.

Worked example

1HFT passage (Q1 in the question bank): "Proponents argue... institutional and retail investors benefit from reduced explicit transaction costs." Question: what benefit do proponents claim? Answer B: "Reduction of explicit transaction costs for investors." — direct paraphrase of the text.
2Wrong trap: option C ("guaranteeing permanent liquidity") — the passage says liquidity is 'phantom' and withdraws during crises.
3The proponents don't claim permanence.

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Why is this the correct answer?

Eliminate any option that contradicts something stated directly in the lesson, then check which one actually follows from the rule you just learned. Tell me which option confused you and I'll point to the exact line.

Exam strategy

If you can explain why the wrong answers are wrong, you know the topic. Remembering the right one only gets you halfway.

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