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Statement: Should there be only one rate of interest for term deposits of varying duration in banks ? Arguments: (I) No. People well refrain from keeping money for longer duration resulting into reduction of Liquidity level 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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Answer: Option A Explanation: Clearly, the proposed scheme would discourage people from keeping deposits for larger duration( the rate of interest being the same for shorter duration) and not draw in more funds. So, only argument I holds. |
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' arguments so far as they relate to the questions.
'Weak' arguments may not be directly related to the questions and may be of minor importance or may be related to the trivial aspect of the question.
Each question below is followed by two arguments I and II. You have to decide which of the arguments is a 'strong' argument and which is a 'weak' argument.
Give Answer
(a) Only argument I is strong
(b) Only argument II is strong
(c) Either I or II is strong
(d) Neither I nor II is strong
(e) Both I and II are strong
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