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(See the complete passage discussion here: lsat/viewtopic.php?t=10837)
The correct answer choice is (D)
This question asks why the author mentions the monarchies’ need for capital. The correct answer choice will explain the purpose of the reference—to introduce an important challenge with which English and French monarchs were presented during the era under discussion.
Answer choice (A): The reference is not presented to cast doubt on the claim presented in this answer choice, so this cannot be the right answer.
Answer choice (B): The need for capital is not mentioned to illustrate creditors’ low opinion of monarchs, so this choice cannot be correct.
Answer choice (C): The reference to the need for capital does not emphasize omnipotence, so this choice cannot be correct.
Answer choice (D): This is the correct answer choice. The author mentions the need for capital to provide an explanation as to why monarchies had issues with too much power (and the associated unfavorable loan terms available).
Answer choice (E): The author does not mention the monarchies’ need for capital to reinforce this critical claim, so this cannot be the right answer to this Must Be True—Purpose question.