Whenever a sentence starts such as below, my brain kind of presupposes that this is a modifier problem, and thus I discard all the answer choices that do not clearly modify the noun after comma. Like in this problem, I know I will simply discard this answer choice as "Declining values" can not modify "The collateral". Do you know How to identify that this is not a modifier problem?
Declining values for farm equipment and land, the collateral against which farmers borrow to get through the harvest season, is going to force many lenders to tighten or deny credit this spring.