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Example Questions
Example Question #3 : Recognizing Details Of Law Passages
Adapted from Criminal Psychology: A Manual for Judges, Practitioners, and Students by Hans Gross (1911)
It is a mistake to suppose that it is enough in most cases to study that side of a person that is at the moment important—his or her dishonesty only, his or her laziness, etc. That will naturally lead to merely one-sided judgment and anyway be much harder than keeping the whole person in eye and studying him or her as an entirety. Every individual quality is merely a symptom of a whole nature and can be explained only by the whole complex; the good properties depend as much on the bad ones as the bad on the good ones. At the very least, the quality and quantity of a good or bad characteristic shows the influence of all the other good and bad characteristics. Kindliness is influenced and partly created through weakness, indetermination, too great susceptibility, a minimum acuteness, false constructiveness, untrained capacity for inference; in the same way, again, the most cruel hardness depends on properties which, taken in themselves, are good: determination, energy, purposeful action, clear conception of one's fellows, healthy egotism, etc. Every person is the result of his or her nature and nurture, i.e. of countless individual conditions, and every one of his or her expressions, again, is the result of all of these conditions. If, therefore, he or she is to be judged, he or she must be judged in the light of them all.
For this reason, all those indications that show us the person as a whole are for us the most important, but also those others are valuable which show him or her up on one side only; however, in the latter case, they are to be considered only as an index that never relieves us from the need further to study the nature of our subject.
We ask, for example, what kind of person will give us the best and most reliable information about the conduct and activity, the nature and character, of an individual? We are told: that sort of person who is usually asked for the information—his or her nearest friends and acquaintances and the authorities. Before all of these people do not show themselves as they are because the most honest will show themselves before people in whose judgment they have an interest at least as good as, if not better than they are—that is fundamental to the general egoistic essence of humanity, which seeks at least to avoid reducing its present welfare. Authorities who are asked to make a statement concerning any person can say reliably only how often the individual was punished or came otherwise in contact with the law or themselves. But concerning the individual's social characteristics the authorities have nothing to say; the detectives have to bring an answer. Then the detectives are, at most, simply people who have had the opportunity to watch and interrogate the servants, house-furnishers, porters, and corner-loafers, and other people in the employ of the individual. Why we do not question these people ourselves I cannot say; if we did, we might know these people on whom we depend for important information and might put our questions according to the answers that we need.
It is a purely negative thing that an official declaration is nowadays not infrequently presented to us in the disgusting form of gossip. But in itself, the form of getting information about people through those who work for them is correct. People show their weaknesses most readily before those whom they hold of no account. This fact is well-known, but not sufficiently studied. It is of considerable importance. The Styrian, Peter Rosegger, one of the best students of mankind, once told a first-rate story of how the most intimate secrets of certain people became common talk although all concerned assured him that nobody had succeeded in getting knowledge of them. The news-agent was finally discovered in the person of an old, quiet woman who worked by the day in various homes and had found a place, unobserved and apparently indifferent, in the corner of the sitting-room. Nobody had told her any secrets, but things were allowed to occur before her from which she might guess and put them together. Nobody had watched this disinterested, ancient lady; she worked like a machine; her thoughts, when she noted a quarrel or anxiety or disagreement or joy, were indifferent to all concerned, and so she discovered a great deal that was kept secret from people perceived to be more important. This simple story is very significant—we are not to pay attention to gossips but to keep in mind that the information of people is in the rule more important and more reliable when the question under consideration is indifferent to them than when it is important.
What is the “general essence of humanity” as described by the author in the third paragraph?
Attentiveness and thoughtfulness
Kindness and warmth
Deception and dishonesty
Self-interest and preservation
Recklessness and selfishness
Self-interest and preservation
The author describes the “general essence of humanity” as “egotism.” We can combine that with the conclusions reached by the author in the body of text that surrounds this excerpt—“Before all of these nobody shows himself as he is, because the most honest man will show himself before people in whose judgment he has an interest at least as good as, if not better than he is—that is fundamental to the general egoistic essence of humanity, which seeks at least to avoid reducing its present welfare.” We may then conclude that the author believes the general essence of humanity is “self-interest and self-preservation." It might perhaps be reasonable to determine that the author believes the general essence of humanity to be “deception and dishonesty,” seeing as how he is discussing how people hide certain parts of themselves from those who are close to them, but it is more accurate to say that the author believes that that “deception” is undertaken because of mankind’s general egotism and instinct towards self-preservation.
Example Question #4 : Recognizing Details Of Law Passages
Adapted from Criminal Psychology: A Manual for Judges, Practitioners, and Students by Hans Gross (1911)
Socrates, in the Meno, sends for one of Meno's servants, to prove the possibility of absolutely certain a priori knowledge. The servant is to determine the length of a rectangle, the area of which is twice that of one measuring two feet. He is to have no previous knowledge of the matter and is to discover the answer for himself. The servant first gives out an incorrect answer, that the length of a rectangle having twice the area of the one mentioned is four feet, thinking that the length doubles with the area. Thereupon Socrates triumphantly points out to Meno that the servant does as a matter of fact not yet quite know the truth under consideration, but that he really thinks he knows it; and then Socrates, in his own Socratic way, leads the servant to the correct solution.
When we properly consider what we have to do with a witness who has to relate any fact, we may see in the Socratic method the simplest example of our task. We must never forget that the majority of mankind dealing with any subject whatever always believe that they know and repeat the truth, and even when they say doubtfully, “I believe— It seems to me,'' there is, in this diffidence, more meant than meets the ear. When people say “I believe that—‘' it merely means that they intend to ensure themselves against the event of being contradicted by better informed persons; but they certainly have not the doubt their expression indicates. When, however, the report of some bare fact is in question (“It rained,” “It was 9 o’clock,'' or “His beard was brown,”) it does not matter to the narrator, and if he or she imparts such facts with the introduction “I believe,'' then he or she was really uncertain. The matter becomes important only where the issue involves partly-concealed observations, conclusions, and judgments. In such cases another factor enters—conceit; what the witness asserts he or she is fairly certain of just because he or she asserts it, and all the “I believes,'' “Perhapses,'' and “It seemeds'' are merely insurance against all accidents.
Generally, statements are made without such reservations and with full assurance. This holds also and more intensely of court witnesses, particularly in crucial matters. Anybody experienced in his or her conduct comes to be absolutely convinced that witnesses do not know what they know. A series of assertions are made with utter certainty. Yet when these are successively subjected to closer examinations, tested for their ground and source, only a very small portion can be retained unaltered. Of course, one may here overshoot the mark. It often happens, even in the routine of daily life, that a person may be made to feel shaky in his most absolute convictions, by means of an energetic attack and searching questions. Conscientious and sanguine people are particularly easy subjects of such doubts. Somebody narrates an event; questioning begins as to the indubitability of the fact, as to the exclusion of possible deception; the narrator becomes uncertain, recalling that, because of a lively imagination, he or she has already believed him- or herself to have seen things otherwise than they actually were, and finally he or she admits that the matter might probably have been different. During trials this is still more frequent. The circumstance of being in court of itself excites most people; the consciousness that one's statement is, or may be, of great significance increases the excitement; and the authoritative character of the official subdues very many people to conform their opinions to his or hers. What wonder then, that however much a person may be convinced of the correctness of his or her evidence, he or she may yet fail in the face of the doubting judge to know anything certainly?
Now one of the most difficult tasks of the criminalist is to hit, in just such cases, upon the truth—neither to accept the testimony blindly and uncritically, nor to render the witness, who otherwise is telling the truth, vacillating and doubtful. But it is still more difficult to lead the witness, who is not intentionally falsifying, but has merely observed incorrectly or has made false conclusions, to a statement of the truth as Socrates leads the servant in the Meno. It is as modern as it is comfortable to assert that this is not the judge's business—that the witness is to depose, his or her evidence is to be accepted, and the judge is to judge. Yet it is supposed before everything else that the duty of the court is to establish the material truth—that the formal truth is insufficient. Moreover, if we notice false observations and let them by, then, under certain circumstance, we are minus one important piece of evidence pro and con, and the whole case may be turned topsy-turvy. We shall, then, proceed in the Socratic fashion. But, inasmuch as we are not concerned with mathematics, and are hence more badly placed in the matter of proof, we shall have to proceed more cautiously and with less certainty than when the question is merely one of the area of a square. On the one hand we know only in the rarest cases that we are not ourselves mistaken, so that we must not, without anything further, lead another to agree with us; on the other hand, we must beware of perverting the witness from his or her possibly sound opinions. Whoever is able to correct the witness's apparently false conceptions and to lead him or her to discover his or her error of his or her own accord and then to speak the truth— whoever can do this and yet does not go too far, deducing from the facts nothing that does not actually follow from them—that person is a master among us.
Why does the author believe that many witnesses begin their testimony with qualifiers like “I believe that . . .”?
To try and win over the support of the judge and jury by seeming humble and contrite
Because many witnesses are not exactly sure what they have or have not seen
None of the provided reasons are correct.
So as to insure themselves against being proved incorrect
All of the provided reasons are correct.
So as to insure themselves against being proved incorrect
The author plainly states his understanding of why many witnesses begin their testimony with “I believe that . . .” when he says, "When people say “I believe that—‘' it merely means that they intend to ensure themselves against the event of being contradicted by better informed persons; but they certainly have not the doubt their expression indicates." Witnesses wish to protect themselves from seeming incorrect to a more well-versed individual, not because they actually doubt their own words that much.
Example Question #5 : Recognizing Details Of Law Passages
Adapted from Criminal Psychology: A Manual for Judges, Practitioners, and Students by Hans Gross (1911)
Socrates, in the Meno, sends for one of Meno's servants, to prove the possibility of absolutely certain a priori knowledge. The servant is to determine the length of a rectangle, the area of which is twice that of one measuring two feet. He is to have no previous knowledge of the matter and is to discover the answer for himself. The servant first gives out an incorrect answer, that the length of a rectangle having twice the area of the one mentioned is four feet, thinking that the length doubles with the area. Thereupon Socrates triumphantly points out to Meno that the servant does as a matter of fact not yet quite know the truth under consideration, but that he really thinks he knows it; and then Socrates, in his own Socratic way, leads the servant to the correct solution.
When we properly consider what we have to do with a witness who has to relate any fact, we may see in the Socratic method the simplest example of our task. We must never forget that the majority of mankind dealing with any subject whatever always believe that they know and repeat the truth, and even when they say doubtfully, “I believe— It seems to me,'' there is, in this diffidence, more meant than meets the ear. When people say “I believe that—‘' it merely means that they intend to ensure themselves against the event of being contradicted by better informed persons; but they certainly have not the doubt their expression indicates. When, however, the report of some bare fact is in question (“It rained,” “It was 9 o’clock,'' or “His beard was brown,”) it does not matter to the narrator, and if he or she imparts such facts with the introduction “I believe,'' then he or she was really uncertain. The matter becomes important only where the issue involves partly-concealed observations, conclusions, and judgments. In such cases another factor enters—conceit; what the witness asserts he or she is fairly certain of just because he or she asserts it, and all the “I believes,'' “Perhapses,'' and “It seemeds'' are merely insurance against all accidents.
Generally, statements are made without such reservations and with full assurance. This holds also and more intensely of court witnesses, particularly in crucial matters. Anybody experienced in his or her conduct comes to be absolutely convinced that witnesses do not know what they know. A series of assertions are made with utter certainty. Yet when these are successively subjected to closer examinations, tested for their ground and source, only a very small portion can be retained unaltered. Of course, one may here overshoot the mark. It often happens, even in the routine of daily life, that a person may be made to feel shaky in his most absolute convictions, by means of an energetic attack and searching questions. Conscientious and sanguine people are particularly easy subjects of such doubts. Somebody narrates an event; questioning begins as to the indubitability of the fact, as to the exclusion of possible deception; the narrator becomes uncertain, recalling that, because of a lively imagination, he or she has already believed him- or herself to have seen things otherwise than they actually were, and finally he or she admits that the matter might probably have been different. During trials this is still more frequent. The circumstance of being in court of itself excites most people; the consciousness that one's statement is, or may be, of great significance increases the excitement; and the authoritative character of the official subdues very many people to conform their opinions to his or hers. What wonder then, that however much a person may be convinced of the correctness of his or her evidence, he or she may yet fail in the face of the doubting judge to know anything certainly?
Now one of the most difficult tasks of the criminalist is to hit, in just such cases, upon the truth—neither to accept the testimony blindly and uncritically, nor to render the witness, who otherwise is telling the truth, vacillating and doubtful. But it is still more difficult to lead the witness, who is not intentionally falsifying, but has merely observed incorrectly or has made false conclusions, to a statement of the truth as Socrates leads the servant in the Meno. It is as modern as it is comfortable to assert that this is not the judge's business—that the witness is to depose, his or her evidence is to be accepted, and the judge is to judge. Yet it is supposed before everything else that the duty of the court is to establish the material truth—that the formal truth is insufficient. Moreover, if we notice false observations and let them by, then, under certain circumstance, we are minus one important piece of evidence pro and con, and the whole case may be turned topsy-turvy. We shall, then, proceed in the Socratic fashion. But, inasmuch as we are not concerned with mathematics, and are hence more badly placed in the matter of proof, we shall have to proceed more cautiously and with less certainty than when the question is merely one of the area of a square. On the one hand we know only in the rarest cases that we are not ourselves mistaken, so that we must not, without anything further, lead another to agree with us; on the other hand, we must beware of perverting the witness from his or her possibly sound opinions. Whoever is able to correct the witness's apparently false conceptions and to lead him or her to discover his or her error of his or her own accord and then to speak the truth— whoever can do this and yet does not go too far, deducing from the facts nothing that does not actually follow from them—that person is a master among us.
Which of these most clearly describes what the author believes happens to “conscientious and sanguine” people when subjected to intense questioning?
They feel more confident in their testimony.
They are inclined to become tentative.
They remain steady throughout questioning.
They can become angry and bellicose.
They are certain to try to deceive the judge.
They are inclined to become tentative.
In context, the author is describing the fact that “conscientious and sanguine” people are particularly subject to having the certainty of their testimony undermined. The author says, “It often happens, even in the routine of daily life, that a person may be made to feel shaky in his most absolute convictions, by means of an energetic attack and searching questions. Conscientious and sanguine people are particularly easy subjects of such doubts.” The author conveys that these people are inclined to become “uncertain,” which is a synonym of “tentative.”
Example Question #6 : Recognizing Details Of Law Passages
Adapted from Criminal Psychology: A Manual for Judges, Practitioners, and Students by Hans Gross (1911)
Socrates, in the Meno, sends for one of Meno's servants, to prove the possibility of absolutely certain a priori knowledge. The servant is to determine the length of a rectangle, the area of which is twice that of one measuring two feet. He is to have no previous knowledge of the matter and is to discover the answer for himself. The servant first gives out an incorrect answer, that the length of a rectangle having twice the area of the one mentioned is four feet, thinking that the length doubles with the area. Thereupon Socrates triumphantly points out to Meno that the servant does as a matter of fact not yet quite know the truth under consideration, but that he really thinks he knows it; and then Socrates, in his own Socratic way, leads the servant to the correct solution.
When we properly consider what we have to do with a witness who has to relate any fact, we may see in the Socratic method the simplest example of our task. We must never forget that the majority of mankind dealing with any subject whatever always believe that they know and repeat the truth, and even when they say doubtfully, “I believe— It seems to me,'' there is, in this diffidence, more meant than meets the ear. When people say “I believe that—‘' it merely means that they intend to ensure themselves against the event of being contradicted by better informed persons; but they certainly have not the doubt their expression indicates. When, however, the report of some bare fact is in question (“It rained,” “It was 9 o’clock,'' or “His beard was brown,”) it does not matter to the narrator, and if he or she imparts such facts with the introduction “I believe,'' then he or she was really uncertain. The matter becomes important only where the issue involves partly-concealed observations, conclusions, and judgments. In such cases another factor enters—conceit; what the witness asserts he or she is fairly certain of just because he or she asserts it, and all the “I believes,'' “Perhapses,'' and “It seemeds'' are merely insurance against all accidents.
Generally, statements are made without such reservations and with full assurance. This holds also and more intensely of court witnesses, particularly in crucial matters. Anybody experienced in his or her conduct comes to be absolutely convinced that witnesses do not know what they know. A series of assertions are made with utter certainty. Yet when these are successively subjected to closer examinations, tested for their ground and source, only a very small portion can be retained unaltered. Of course, one may here overshoot the mark. It often happens, even in the routine of daily life, that a person may be made to feel shaky in his most absolute convictions, by means of an energetic attack and searching questions. Conscientious and sanguine people are particularly easy subjects of such doubts. Somebody narrates an event; questioning begins as to the indubitability of the fact, as to the exclusion of possible deception; the narrator becomes uncertain, recalling that, because of a lively imagination, he or she has already believed him- or herself to have seen things otherwise than they actually were, and finally he or she admits that the matter might probably have been different. During trials this is still more frequent. The circumstance of being in court of itself excites most people; the consciousness that one's statement is, or may be, of great significance increases the excitement; and the authoritative character of the official subdues very many people to conform their opinions to his or hers. What wonder then, that however much a person may be convinced of the correctness of his or her evidence, he or she may yet fail in the face of the doubting judge to know anything certainly?
Now one of the most difficult tasks of the criminalist is to hit, in just such cases, upon the truth—neither to accept the testimony blindly and uncritically, nor to render the witness, who otherwise is telling the truth, vacillating and doubtful. But it is still more difficult to lead the witness, who is not intentionally falsifying, but has merely observed incorrectly or has made false conclusions, to a statement of the truth as Socrates leads the servant in the Meno. It is as modern as it is comfortable to assert that this is not the judge's business—that the witness is to depose, his or her evidence is to be accepted, and the judge is to judge. Yet it is supposed before everything else that the duty of the court is to establish the material truth—that the formal truth is insufficient. Moreover, if we notice false observations and let them by, then, under certain circumstance, we are minus one important piece of evidence pro and con, and the whole case may be turned topsy-turvy. We shall, then, proceed in the Socratic fashion. But, inasmuch as we are not concerned with mathematics, and are hence more badly placed in the matter of proof, we shall have to proceed more cautiously and with less certainty than when the question is merely one of the area of a square. On the one hand we know only in the rarest cases that we are not ourselves mistaken, so that we must not, without anything further, lead another to agree with us; on the other hand, we must beware of perverting the witness from his or her possibly sound opinions. Whoever is able to correct the witness's apparently false conceptions and to lead him or her to discover his or her error of his or her own accord and then to speak the truth— whoever can do this and yet does not go too far, deducing from the facts nothing that does not actually follow from them—that person is a master among us.
Which of these is NOT a reason given by the author as to why the testimony of witnesses is subject to uncertainty?
The realities of being in court are apt to make witness’ words seem of great significance.
The domineering nature of lawyers and judges causes witnesses to acquiesce to their strength of character.
Witnesses are prone to exaggeration that is quickly and easily disproved.
Witnesses are likely to already doubt the exact authenticity of what they have seen.
All of these answers are reasons given by the author.
Witnesses are prone to exaggeration that is quickly and easily disproved.
To answer this question, it is best to read carefully and try to eliminate one answer choice at a time. Firstly, the author states “the narrator becomes uncertain, recalling that, because of a lively imagination, he or she has already believed him- or herself to have seen things otherwise than they actually were,” which tells us that the author believes a witness is likely to already doubt the authenticity of what he or she has seen. In addition, the author declares, “The circumstance of being in court of itself excites most people; the consciousness that one's statement is, or may be, of great significance increases the excitement; and the authoritative character of the official subdues very many people to conform their opinions to his.” This reveals to us that the realities of being in court are apt to make the witness’ words seem of great significance and that the domineering nature of lawyers and judges causes witnesses to acquiesce. The author does not mention that witnesses are prone to exaggeration and certainly does not suggest that such exaggeration is quickly and easily disproved.
Example Question #21 : Content Of Law Passages
"Lynch Law" by William Floyd (2015)
“Lynch Law” as it was known can appear as a peculiar feature of the past only. Never in the present day does a mob, carrying torches, clubs, and small firearms, descend upon a county jail to take from a cell an accused criminal who is supposed to have committed a crime so heinous and unspeakable that the crowd believes the only justice is to find the nearest sturdy tree to hang the accused from. This action, so common in the late nineteenth and early twentieth centuries, particularly in the Southern portion of the United States, died out after World War II, with only a few isolated incidents, roundly disparaged, revealing the last gasp of the Lynch Law.
Perhaps the exact mechanisms of lynching culture do not exist, features of a bygone society, more rural, prejudiced, and violent than that which replaced it. Yet the attitudes have never left the consciousness of many Americans. On the chyrons of the nightly news and splashed across front pages of newspapers, accused criminals are only treated as such out of formality. In actuality, the tone of the reports reveals that the poor soul accused of a crime is assumed to be found guilty once the proper processes of the judicial system have run their course. Through a nod to a presumption of innocence and unwavering fidelity to the slow march of the courts, any sensible citizen can congratulate themselves that they are well beyond their ancestors, whether by blood or thought, who invoked the lynch law.
In actuality, a person can be arrested on the most base of suspicions, that they have the same vague hairstyle, shirt color, or peculiar mannerism of suspect’s description given by a witness. Then this poor soul will have to be questioned by any number of detectives, who look for the slightest pause, tic, or odd gaze. And heaven help him should he forget where he was for some small sliver of time. At that point, he is all but done for in front of the criminal justice system, being as he is with some apparent similarity to the description of the suspect, no alibi, and the accusations of police and prosecutors. While he is exceedingly lucky not to have to worry about being taken out of his cell and murdered underneath a large tree, he is still shunted forward to a removal from society after his placement in a labyrinthine prison system.
The last examples of lynching in America occurred __________.
during the early twentieth century
during the late nineteenth century.
in the eighteenth century
after World War II
immediately before World War II
after World War II
The author does not go into many specifics about the history of lynching, instead focusing on the attitudes and cultural forces which caused lynching to happen; however, the author does give one small clue as to the chronology of lynching by noting that it "died out after World War II."
Example Question #22 : Content Of Law Passages
"529 College Savings Plans"
Section 529 of the Internal Revenue Code encourages saving for future college costs through a kind of tax-advantaged savings account. A 529 plan describes a program establishing savings accounts for all manner of college costs in which the account holder trades investment risk for the prospect of growing the balance. As with all securities, novice investors should consult with a licensed broker before investing money in a 529 plan.
A 529 college savings account comes into existence when an investor chooses a plan and names a beneficiary. States drove the creation of this investment vehicle in response to rising education costs and still manage the investment funds for all 529 plans. Brokers come into the picture when selecting a plan since an account holder need not be a resident of the state managing it. Plans offered by individual states differ, but all benefit from favorable federal tax treatment.
However, securing the tax benefits requires professional care. Section 529 shields contributions to plan savings accounts from federal income taxes up to an annual limit of $14,000 for each beneficiary. The money remains tax-exempt as long as it goes to pay for “qualified higher education expenses,” a definition which now includes computer and internet costs. A withdrawal from a 529 account for any other purpose will likely trigger federal tax liability and a 10 percent penalty.
For his or her part, the beneficiary enjoys a passive role in the investment process. The account holder controls the investment strategy and can choose to allocate funds to conservative or aggressive growth options. Many state 529 plans offer something similar to a retirement pathways account that becomes more conservative as the beneficiary gets closer to the anticipated date of college enrollment. A professional broker can help navigate the options.
A broker can also help an investor avoid missteps after the account is created. Unlike with retirement accounts, federal tax law restricts investment changes to one per calendar year. An account holder can change the beneficiary of a 529 plan or rollover unused funds to a new beneficiary without penalty, but only if the original and new beneficiaries are related. The state agency managing a 529 plan may place additional restrictions on changing the account.
Finally, it is important to have guidance fitting a 529 account into the overall strategy for paying for college. A beneficiary can use 529 plan funds for the same broad purposes as financial aid. As a result, it may reduce the beneficiary’s eligibility for need-based grants or loans.
Of course, using a broker will increase the transaction costs. A broker who helps the account holder navigate to the best state plan will charge a transaction fee or “load.” The broker can shift the load to various phases in the investment process in order to optimize the cost depending on how long the account holder plans to keep the investment.
According to the passage, who or what manages the investment fund in a 529 college savings plan?
The account holder
The broker
The beneficiary
The federal government
The state government
The state government
Correct answer: Paragraph 2 explains that each state manages the investment fund for the 529 plan it offers.
Wrong answers: The account holder manages the account, but not the fund investments; A broker can help the account holder manage the account, but not the fund investments; The passage only mentions federal policy with regard to tax treatment; The beneficiary’s role is passive, according to the passage.
Example Question #21 : Content Of Law Passages
"529 College Savings Plans"
Section 529 of the Internal Revenue Code encourages saving for future college costs through a kind of tax-advantaged savings account. A 529 plan describes a program establishing savings accounts for all manner of college costs in which the account holder trades investment risk for the prospect of growing the balance. As with all securities, novice investors should consult with a licensed broker before investing money in a 529 plan.
A 529 college savings account comes into existence when an investor chooses a plan and names a beneficiary. States drove the creation of this investment vehicle in response to rising education costs and still manage the investment funds for all 529 plans. Brokers come into the picture when selecting a plan since an account holder need not be a resident of the state managing it. Plans offered by individual states differ, but all benefit from favorable federal tax treatment.
However, securing the tax benefits requires professional care. Section 529 shields contributions to plan savings accounts from federal income taxes up to an annual limit of $14,000 for each beneficiary. The money remains tax-exempt as long as it goes to pay for “qualified higher education expenses,” a definition which now includes computer and internet costs. A withdrawal from a 529 account for any other purpose will likely trigger federal tax liability and a 10 percent penalty.
For his or her part, the beneficiary enjoys a passive role in the investment process. The account holder controls the investment strategy and can choose to allocate funds to conservative or aggressive growth options. Many state 529 plans offer something similar to a retirement pathways account that becomes more conservative as the beneficiary gets closer to the anticipated date of college enrollment. A professional broker can help navigate the options.
A broker can also help an investor avoid missteps after the account is created. Unlike with retirement accounts, federal tax law restricts investment changes to one per calendar year. An account holder can change the beneficiary of a 529 plan or rollover unused funds to a new beneficiary without penalty, but only if the original and new beneficiaries are related. The state agency managing a 529 plan may place additional restrictions on changing the account.
Finally, it is important to have guidance fitting a 529 account into the overall strategy for paying for college. A beneficiary can use 529 plan funds for the same broad purposes as financial aid. As a result, it may reduce the beneficiary’s eligibility for need-based grants or loans.
Of course, using a broker will increase the transaction costs. A broker who helps the account holder navigate to the best state plan will charge a transaction fee or “load.” The broker can shift the load to various phases in the investment process in order to optimize the cost depending on how long the account holder plans to keep the investment.
The author mentions the “qualified higher education expense” rule in order to ____________.
reinforce that a 529 plan is a risky investment product best avoided
respond to criticisms that brokers overcharge for their services
offer a reason for choosing a 529 plan as an investment vehicle
demonstrate one possible pitfall for a novice investor who goes it alone
advocate for streamlining the tax code to make plan management easier
demonstrate one possible pitfall for a novice investor who goes it alone
Correct answer: The author mentions this threat of taxes and penalties for failing to comply with this IRS rule in order to illustrate one reason why a novice investor should consult a professional before investing in a 529 plan.
Wrong answers: The author is not trying to dissuade the reader from investing in a 529 plan; The passage never mentions a criticism against brokers; Advocating for reform is not the reason the author mentions the rule here; The author is not trying to push investment in 529 plans.
Example Question #1 : Main Idea Of Law Passages
Adapted from The Common Law, by Oliver Wendell Holmes, Jr. (1881)
To present a general view of the Common Law, other tools are needed besides logic. It is something to show that the consistency of a system requires a particular result, but it is not all. The life of the law has not been logic: it has been experience. The felt necessities of the time, the prevalent moral and political theories, intuitions of public policy, avowed or unconscious, even the prejudices which judges share with their fellow-men, have had a good deal more to do than the syllogism in determining the rules by which men should be governed. The law embodies the story of a nation's development through many centuries, and it cannot be dealt with as if it contained only the axioms and corollaries of a book of mathematics. In order to know what it is, we must know what it has been, and what it tends to become. We must alternately consult history and existing theories of legislation. But the most difficult labor will be to understand the combination of the two into new products at every stage. The substance of the law at any given time pretty nearly corresponds, so far as it goes, with what is then understood to be convenient; but its form and machinery, and the degree to which it is able to work out desired results, depend very much upon its past.
In Massachusetts today, while, on the one hand, there are a great many rules which are quite sufficiently accounted for by their manifest good sense, on the other, there are some which can only be understood by reference to the infancy of procedure among the German tribes, or to the social condition of Rome under the Decemvirs.
I shall use the history of our law so far as it is necessary to explain a conception or to interpret a rule, but no further. In doing so there are two errors equally to be avoided both by writer and reader. One is that of supposing, because an idea seems very familiar and natural to us, that it has always been so. Many things which we take for granted have had to be laboriously fought out or thought out in past times. The other mistake is the opposite one of asking too much of history. We start with man full grown. It may be assumed that the earliest barbarian whose practices are to be considered, had a good many of the same feelings and passions as ourselves.
Which of the following best describes the main idea of this passage?
While history and theory are generally more reliable guides to understanding the law than pure logical reasoning, given that the common law is a product of societies situated in particular times and places, even these tools must observe certain bounds.
Philosophical theories are not adequate for understanding the nature of the common law, but soiciological theories are.
The rules and guidelines of statutory law are rooted in the practices of the distant past, and are unlikely to be applicible to present situations without clarification as to their initial purposes.
Historical research and abstract theory can be combined, albeit with some difficulty, to reach an understanding of the common law.
The law can only be understood through its history, rather than through abstract theorizing; the practice of law is, at its heart, not an axiomatic discipline.
While history and theory are generally more reliable guides to understanding the law than pure logical reasoning, given that the common law is a product of societies situated in particular times and places, even these tools must observe certain bounds.
The credited response is the only one that captures all of the significant aspects of the author's main idea: namely, that mere logic is inadequate for understanding the law; that the common law must be understood through its history and development as a social practice; that the fact that the common law was influenced by the histories of the societies who developed it has shaped the common law of the present day; that both legal theory and an understanding of this history must be used to understand the nature of the common law; and, finally, that there are limits to how far a strictly historical investigation can proceed.
Example Question #1 : Main Idea Of Law Passages
Adapted from Criminal Psychology: A Manual for Judges, Practitioners, and Students by Hans Gross (1911)
It is a mistake to suppose that it is enough in most cases to study that side of a person that is at the moment important—his or her dishonesty only, his or her laziness, etc. That will naturally lead to merely one-sided judgment and anyway be much harder than keeping the whole person in eye and studying him or her as an entirety. Every individual quality is merely a symptom of a whole nature and can be explained only by the whole complex; the good properties depend as much on the bad ones as the bad on the good ones. At the very least, the quality and quantity of a good or bad characteristic shows the influence of all the other good and bad characteristics. Kindliness is influenced and partly created through weakness, indetermination, too great susceptibility, a minimum acuteness, false constructiveness, untrained capacity for inference; in the same way, again, the most cruel hardness depends on properties which, taken in themselves, are good: determination, energy, purposeful action, clear conception of one's fellows, healthy egotism, etc. Every person is the result of his or her nature and nurture, i.e. of countless individual conditions, and every one of his or her expressions, again, is the result of all of these conditions. If, therefore, he or she is to be judged, he or she must be judged in the light of them all.
For this reason, all those indications that show us the person as a whole are for us the most important, but also those others are valuable which show him or her up on one side only; however, in the latter case, they are to be considered only as an index that never relieves us from the need further to study the nature of our subject.
We ask, for example, what kind of person will give us the best and most reliable information about the conduct and activity, the nature and character, of an individual? We are told: that sort of person who is usually asked for the information—his or her nearest friends and acquaintances and the authorities. Before all of these people do not show themselves as they are because the most honest will show themselves before people in whose judgment they have an interest at least as good as, if not better than they are—that is fundamental to the general egoistic essence of humanity, which seeks at least to avoid reducing its present welfare. Authorities who are asked to make a statement concerning any person can say reliably only how often the individual was punished or came otherwise in contact with the law or themselves. But concerning the individual's social characteristics the authorities have nothing to say; the detectives have to bring an answer. Then the detectives are, at most, simply people who have had the opportunity to watch and interrogate the servants, house-furnishers, porters, and corner-loafers, and other people in the employ of the individual. Why we do not question these people ourselves I cannot say; if we did, we might know these people on whom we depend for important information and might put our questions according to the answers that we need.
It is a purely negative thing that an official declaration is nowadays not infrequently presented to us in the disgusting form of gossip. But in itself, the form of getting information about people through those who work for them is correct. People show their weaknesses most readily before those whom they hold of no account. This fact is well-known, but not sufficiently studied. It is of considerable importance. The Styrian, Peter Rosegger, one of the best students of mankind, once told a first-rate story of how the most intimate secrets of certain people became common talk although all concerned assured him that nobody had succeeded in getting knowledge of them. The news-agent was finally discovered in the person of an old, quiet woman who worked by the day in various homes and had found a place, unobserved and apparently indifferent, in the corner of the sitting-room. Nobody had told her any secrets, but things were allowed to occur before her from which she might guess and put them together. Nobody had watched this disinterested, ancient lady; she worked like a machine; her thoughts, when she noted a quarrel or anxiety or disagreement or joy, were indifferent to all concerned, and so she discovered a great deal that was kept secret from people perceived to be more important. This simple story is very significant—we are not to pay attention to gossips but to keep in mind that the information of people is in the rule more important and more reliable when the question under consideration is indifferent to them than when it is important.
Which of these is the best title for this passage?
"On the Ignorance of Authorities as to the True Character of an Individual"
"On the Importance of Considering the Testimony of the Poorest Members of Society"
"On the Importance of Understanding Both Sides of an Individual’s Character"
"How to Properly Identify and Understand the Whole Character of an Individual"
"On the Fallacy of Asking Close Friends to Reveal the Nature of the Accused"
"How to Properly Identify and Understand the Whole Character of an Individual"
When you are asked to determine the title of a passage, you are generally being asked if you understand the author’s purpose for writing the passage and the thesis that is presented in it. In this case, the purpose of the passage is to urge a complete consideration of the character of an individual by seeking out the evidence of those who are held in the lowest esteem by the individual, because it is to these people that the individual will show the most honest version of him- or herself. The answer choice that is closest to this is "How to Properly Identify and Understand the Whole Character of an Individual." Two other answer choices are close, but both are incomplete. Firstly, "On the Importance of Considering the Testimony of the Poorest Members of Society"—this is the “how” that is discussed in the correct answer. Secondly, "On the Importance of Understanding Both Sides of an Individual’s Character"—this is what the “how” is achieving in the correct answer.
Example Question #2 : Main Idea Of Law Passages
Adapted from Criminal Psychology: A Manual for Judges, Practitioners, and Students by Hans Gross (1911)
It is a mistake to suppose that it is enough in most cases to study that side of a person that is at the moment important—his or her dishonesty only, his or her laziness, etc. That will naturally lead to merely one-sided judgment and anyway be much harder than keeping the whole person in eye and studying him or her as an entirety. Every individual quality is merely a symptom of a whole nature and can be explained only by the whole complex; the good properties depend as much on the bad ones as the bad on the good ones. At the very least, the quality and quantity of a good or bad characteristic shows the influence of all the other good and bad characteristics. Kindliness is influenced and partly created through weakness, indetermination, too great susceptibility, a minimum acuteness, false constructiveness, untrained capacity for inference; in the same way, again, the most cruel hardness depends on properties which, taken in themselves, are good: determination, energy, purposeful action, clear conception of one's fellows, healthy egotism, etc. Every person is the result of his or her nature and nurture, i.e. of countless individual conditions, and every one of his or her expressions, again, is the result of all of these conditions. If, therefore, he or she is to be judged, he or she must be judged in the light of them all.
For this reason, all those indications that show us the person as a whole are for us the most important, but also those others are valuable which show him or her up on one side only; however, in the latter case, they are to be considered only as an index that never relieves us from the need further to study the nature of our subject.
We ask, for example, what kind of person will give us the best and most reliable information about the conduct and activity, the nature and character, of an individual? We are told: that sort of person who is usually asked for the information—his or her nearest friends and acquaintances and the authorities. Before all of these people do not show themselves as they are because the most honest will show themselves before people in whose judgment they have an interest at least as good as, if not better than they are—that is fundamental to the general egoistic essence of humanity, which seeks at least to avoid reducing its present welfare. Authorities who are asked to make a statement concerning any person can say reliably only how often the individual was punished or came otherwise in contact with the law or themselves. But concerning the individual's social characteristics the authorities have nothing to say; the detectives have to bring an answer. Then the detectives are, at most, simply people who have had the opportunity to watch and interrogate the servants, house-furnishers, porters, and corner-loafers, and other people in the employ of the individual. Why we do not question these people ourselves I cannot say; if we did, we might know these people on whom we depend for important information and might put our questions according to the answers that we need.
It is a purely negative thing that an official declaration is nowadays not infrequently presented to us in the disgusting form of gossip. But in itself, the form of getting information about people through those who work for them is correct. People show their weaknesses most readily before those whom they hold of no account. This fact is well-known, but not sufficiently studied. It is of considerable importance. The Styrian, Peter Rosegger, one of the best students of mankind, once told a first-rate story of how the most intimate secrets of certain people became common talk although all concerned assured him that nobody had succeeded in getting knowledge of them. The news-agent was finally discovered in the person of an old, quiet woman who worked by the day in various homes and had found a place, unobserved and apparently indifferent, in the corner of the sitting-room. Nobody had told her any secrets, but things were allowed to occur before her from which she might guess and put them together. Nobody had watched this disinterested, ancient lady; she worked like a machine; her thoughts, when she noted a quarrel or anxiety or disagreement or joy, were indifferent to all concerned, and so she discovered a great deal that was kept secret from people perceived to be more important. This simple story is very significant—we are not to pay attention to gossips but to keep in mind that the information of people is in the rule more important and more reliable when the question under consideration is indifferent to them than when it is important.
Which of these sentences best states the thesis of this passage?
“Authorities who are asked to make a statement concerning any person, can say reliably only how often the man was punished or came otherwise in contact with the law or themselves.”
“It is a mistake to suppose that it is enough in most cases to study that side of a man which is at the moment important—his dishonesty only, his laziness, etc.”
“. . . people show their weaknesses most readily before those whom they hold of no account.”
“. . . one of the best students of mankind, once told a first-rate story of how the most intimate secrets of certain people became common talk although all concerned assured him that nobody had succeeded in getting knowledge of them.”
“Why we do not question the latter ourselves I cannot say. . .”
“. . . people show their weaknesses most readily before those whom they hold of no account.”
The primary thesis of this passage is that people show the worst of themselves to people they hold in very low esteem. This is the primary focus of the author’s argument, particularly in the long third and concluding paragraphs. Of these answer choices, only “. . . people show their weaknesses most readily before those whom they hold of no account” is close to this. The statement that appears in the introduction, “It is a mistake to suppose that it is enough in most cases to study that side of a person that is at the moment important—his or her dishonesty only, his or her laziness, etc.” is incorrect because it only introduces the importance of understanding the whole of a person's character. This is part of the author’s argument, of course, but it mainly functions as a prelude into how to understand the whole of a person's character. The answer choice “. . . one of the best students of mankind, once told a first-rate story of how the most intimate secrets of certain people became common talk although all concerned assured him that nobody had succeeded in getting knowledge of them" is part of the evidence the author presents to support the thesis.