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.

Statement should there be only one rate of interest for term deposit

1.	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.
A.	if only Argument I is strong
B.	if only Argument II is strong
C.	if either I or II is strong
D.	if neither I nor II is strong
Answer» B. if only Argument II is strong

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