Read the following passage and answer the given questions. In recent years,…
2025
Read the following passage and answer the given questions.
In recent years, China’s economy has expanded rapidly, with consumer spending playing a pivotal role. From groceries to luxury items, nearly every purchase now passes through digital payment gateways such as Alipay and WeChat Pay. These platforms have revolutionized the financial landscape, providing convenience and speed. However, beneath this innovation lies a growing concern: the overcharging practices of these payment firms. Merchants across sectors have complained that the transaction fees are often higher than advertised. Small firms, in particular, feel the burden, as they rely heavily on digital payments to stay competitive in a market where cash is steadily declining. Many local businesses, unable to bear the pressure of mounting costs, have folded within months of adopting these systems. This _____________ how dependence on a few gateways can distort fair competition. A recent report highlights that while international credit card companies charge between 1% and 3% per transaction, some Chinese gateways impose hidden charges that push the effective rate even higher. The issue is not just about percentages; merchants also face delays in settlement, mandatory promotional tie-ins, and penalties for using alternative platforms. These tactics create an environment where firms have little choice but to comply. Interestingly, consumers remain largely unaware of the scale of overcharging because the extra costs are often folded into the final prices of goods and services. In a way, the weather of the broader economy—rising inflation, slowing exports, and unpredictable growth—makes these charges even harder to digest. Instead of encouraging financial freedom, these practices contribute to a sense of dependency on a few dominant players. Observers warn that if unchecked, this trend could harm innovation in the long run. The monopolistic grip of payment giants not only squeezes small firms but also discourages new entrants from experimenting with alternative solutions. Unless greater transparency and regulatory oversight are introduced, the promise of a seamless digital economy may end up costing more than it delivers.
How does the overall state of the economy affect the problems caused by digital payment platforms, according to the passage?
- A.
It helps small merchants adapt faster to digital systems.
- B.
It makes overcharging practices more acceptable to the public.
- C.
It increases the burden of overcharging due to financial pressures like inflation.
- D.
It incentivizes payment firms to reduce fees.
- E.
It drives consumers away from digital platforms.
Show answer & explanation
Correct answer: C
Concept
This is an inference question about a cause-and-effect link stated in the passage. To answer it, do not rely on outside knowledge or general impressions: find the single sentence where the author directly connects the two ideas named in the question — here, the broader state of the economy and the problems created by the payment platforms — and read what relationship the author asserts between them.
Applying it to this passage
The passage makes the link in one specific line: “the weather of the broader economy—rising inflation, slowing exports, and unpredictable growth—makes these charges even harder to digest.” In other words, the wider economic conditions do not soften or solve the overcharging; they intensify how heavily those charges weigh on merchants. So the overall economy worsens the existing problem by adding financial pressures such as inflation on top of the hidden fees.
That is exactly what “It increases the burden of overcharging due to financial pressures like inflation” says, so it is the correct reading of the passage.
Why the other readings do not fit the passage
“It helps small merchants adapt faster to digital systems” — the passage links the economy to harder-to-bear charges, not to easier adaptation; it actually says small firms feel the burden and many folded.
“It makes overcharging practices more acceptable to the public” — the passage attributes public unawareness to costs being hidden in final prices, not to economic conditions making overcharging acceptable.
“It incentivizes payment firms to reduce fees” — nothing in the passage says the economy pushes the firms to lower fees; the author warns the monopolistic grip persists unless regulation steps in.
“It drives consumers away from digital platforms” — the passage says consumers stay largely unaware because the extra cost is folded into prices, so it does not claim the economy pushes consumers away.