Study the following instructions carefully and then answer the question that follow .
making icisions about importatn questions, is desirable that a candidate is able to distinguish between 'strong' and 'weak' assuments so far as they relate to the questions. weak' arguments may not be directly related to trivial aspect of the question. Each question below is followed by two arguments numbered and ll. You have to decide which of the arguments is a 'strong' argument and which is a weak'.
Statement Should there be only one rate of interset for term deposit of varying duration in banks ?
Arguments
l No, people will refrain from keeping money for longer duration resulting into reduction of liquidity of the banks.
ll. Yes, this will be much simple for the common people and they may be encouraged to keep more money in banks.

Options

A. if only Argument l is strong
B. if only Argument ll is strong
C. if either l or ll is strong
D. if neither l nor ll is strong

Answer

A

Explanation

If we apply the proposed scheme, people will not deposit their money for a longer period and thus liquidly with the bank will fall directecally , So, only Argument l holds.