Read the following passage excerpt regarding early agricultural economic history:
'Although late nineteenth-century agrarian cooperatives in the American Midwest frequently declared complete financial independence from commercial lending houses, their surviving operational ledgers reveal that nearly all of these organizations relied regularly on short-term bank credit to purchase seasonal harvests from local farmers.'
Which of the following statements about late nineteenth-century agrarian cooperatives in the American Midwest is most strongly supported by the passage excerpt?
- They were unable to fund their seasonal crop purchases relying solely on their internal financial reserves.Cevap
- BThey ultimately suffered financial failure because of their dependence on commercial lending houses.
- CThey publicly repudiated commercial lending houses because bank credit terms were predatory.
- DThey extended short-term bank credit directly to local farmers to encourage seasonal harvest growth.
- EThey operated entirely without relying on external commercial financial institutions.
Cevap
Late nineteenth-century Midwestern agrarian cooperatives were unable to fund their seasonal crop purchases relying solely on their internal financial reserves.
The sentence explicitly states that surviving ledgers reveal cooperatives relied regularly on short-term bank credit in order to buy seasonal harvests from local farmers. From this factual premise, it necessarily follows that the cooperatives' own internal funds were insufficient to cover those harvest purchases on their own.
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Single-Sentence Inferences