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GMAT Practice Question (One of Hundreds)

Some officials both at the Treasury Department and the Securities and Exchange Commission recently said in off-the-record conversations that it may be a good idea to require that all large and highly leveraged banks should decrease their debt and should increase their asset base.

A)	to require that all large and highly leveraged banks should decrease their debt and should increase their asset base
B)	requiring that all large and highly leveraged banks decrease their debt and increase their asset base
C)	to require of all large and highly leveraged banks the decreasing of debt and an increase in their asset base
D)	requiring that all large and highly leveraged banks to decrease their debt and to increase their asset base
E)	to require all large and highly leveraged banks to decrease their debt and increase their asset base

Correct Answer: E

There are two actions that are being suggested and these should be parallel: (1) to decrease their debt (2) [to] increase their asset base.

There are two main issues in this question.

(1) There are two actions that are being suggested and these should be parallel: (a) to decrease their debt (b) to increase their asset base.

(2) The use of the word should is redundant since the sentence (with the words require that) already carries the implication that banks need to take certain action.

the word should is redundant since the verb to require and the context of the sentence indicate that the suggested actions should be taken
the phrase it may be a good idea requiring that... is not correct as a verb (i.e., to require) is needed
the phrase the decreasing of debt and an increase is not parallel
the infinitive form of the verb to decrease cannot be used after requiring that all large and highly leveraged banks as it is awkward and not idiomatic
the phrase banks ... to decrease ... [to] increase is parallel since both verbs are used in the infinitive form (the second to is implied); the unnecessary word should is omitted

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