Direction: Each question given below consists of a statement, followed by three or four arguments numbered I, II, III and IV. You have to decide which of the argument is/are 'strong' argument(s) and which is/are 'weak' argument(s) and accordingly choose your answer from the alternatives given below each question.
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Statement:
Should there be only few banks in place of numerous banks in India?
Arguments:
I. Yes. This will help secure the investor's money as these big banks will be able to withstand intermitten market related shocks.
II. No. A large number of people will lose their jobs as after the merger many employees will be redundant.
III. Yes. This will help consolidate the entire banking industry and will lead to healthy competition
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- None is Strong
- Only I and II are strong
- Only II and III are strong
- Only I and III are strong
- All are strong
Correct Option: A
The security of the investor's money is not related to the size of the bank. Besides, even after consolidation, the number of investors, their amounts and hence the duties shall remain the same and so no employees will be redundant.Reducing the number of smaller banks will also not affect the mutual competition among the banks. Thus,none of the arguments hold strong.
