Multiple choice

Which of the following if true, would most strengthen the conclusion?

Directions: Answer the given question based on the following passage:

Smart people are the catalysts for progress but sometimes they cause immeasurable harm while trying to do good. An eccentric millionaire, Jonathan Holden, living in America in the early 20th century set up a trust that invested two and a half million dollars in a series of trusts at 5% compounding interest. Though such trusts were not uncommon, what was unprecedented about these trusts was that they had a lock-in period of either 500 years or 1000 years. By the time of maturity, it is estimated that the Unitarian Church, one of the beneficiaries of Holden’s generosity will have a wealth of around 25 billion dollars. The State of Pennsylvania, beneficiary of a 1000 years trust, will have a cool $ 425 trillion. The amount of the payout for the State of Pennsylvania, meant by Holden as a tribute to his hero - Benjamin Franklin, and meant to obviate the need for the denizens of the State to ever pay income tax again, might achieve its objective, but would end up bankrupting the United States.

  1. According to many prominent economists, Holden's descendents, the executors of the trust, would own around half of the Fortune-500 companies in the twenty-fifth century.

  2. The Unitarian Church is preaching a rather militant brand of Christianity.

  3. A court has ordered the interest on the accumulated amount to be paid out to the beneficiaries every year.

  4. Fresh calculations have proven that the quantum of payout will be less than one-tenth of the figures earlier estimated.

  5. A recent law has made it mandatory for all trusts, executed at any point in time, to have a maximum term of 200 years.
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A Correct answer
Explanation

(1) Correct; because they would own half of Fortune 500 companies, they would have a stranglehold on commerce and a monopoly in many sectors. This would be harmful for the world economy as a whole. (2) Incorrect; though the consequences of militant religion would be bad, there is a better, a more all-encompassing reason available. (3) Incorrect; this would mean that the money would not compound further, and the yearly payouts will preclude the possibility of a global meltdown 500 or 1000 years later. (4) Incorrect; this will weaken the conclusion. (5) Incorrect; this will mean that the interest payable to the trusts possibly would not compound to the extent that it will become enough to have catastrophic consequences for U.S. or the world economy.

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