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.
Which of the following statements is/are FALSE according to the passage?
(I) The majority of consumers are well-informed about the extra transaction charges added by payment firms.
(II) The convenience of digital payments has completely eliminated financial dependency on dominant platforms.
(III) All Chinese digital gateways charge uniformly between 1% and 3% per transaction.
Answer: E. All (I), (II), and (III) — ConceptA statement is FALSE "according to the passage" when it contradicts or overstates what the passage actually asserts. To judge each statement, match it…
- A.
Only (I)
- B.
Only (II)
- C.
Both (I) and (II)
- D.
Both (I) and (III)
- E.
All (I), (II), and (III)
Attempted by 4 students.
Show answer & explanation
Correct answer: E
Concept
A statement is FALSE "according to the passage" when it contradicts or overstates what the passage actually asserts. To judge each statement, match it against the passage's own claims: a universal word ("all", "completely", "majority") is false if the passage qualifies the claim ("some", "largely", "a sense of").
Applying it to each statement
(I) The passage states that consumers "remain largely unaware of the scale of overcharging" because the extra costs are folded into final prices. So claiming the majority are well-informed contradicts the passage — this statement is FALSE.
(II) The passage says these practices "contribute to a sense of dependency on a few dominant players" and warns of a "monopolistic grip". So claiming convenience has completely eliminated dependency contradicts the passage — this statement is FALSE.
(III) The passage says the 1%–3% range applies to international credit card companies, while some Chinese gateways add hidden charges that push the effective rate even higher. So claiming all Chinese gateways charge uniformly 1%–3% contradicts the passage — this statement is FALSE.
Result
All three statements (I), (II) and (III) are FALSE according to the passage, so the option naming all three is correct.