I like to think of folders as gatekeepers. The permissions of each folder allow you to view this folder and any of its below. When you pass by one gatekeeper, you pass by him, and the permissions associated with this folder no longer matter. More specifically, permission to execute in folders is actually the ability to enter (a list of files inside). Each file has permission on whether it is a write / read / executable.
So, as long as you have permissions to view / read files inside one folder, you can move to the child folder and do whatever this folder allows you to do.
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