Direction: Study the following instructions carefully and then answer the questions that follow.
In making decisions about important questions, it is desirable that a candidate is able to distinguish between 'strong' and 'weak' argument so for as they relate to the questions. 'Weak' argument may not be directly related to the trivial aspect of the question. Each question below is followed by two argument numbered I and II. You have to decide which of the argument is a 'strong' argument and which is a 'weak'.
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Statement
should there be only one rate of interest for term deposit of varying duration in banks?
Arguments
I. No,people will refrain from keeping money for longer duration resulting into reduction of liquidity of the banks.
II. Yes, this will be much simple for the common people and they may be encouraged to keep more money in banks.
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- if only Argument I is strong
- if only Argument II is strong
- if either I or II is strong
- if neither I nor II is strong
Correct Option: A
if we apply the proposed scheme,people will not deposit their money for longer period and thus liquidity with the bank will fall drastically. So, only Argument I holds.
