1.

Statement: Should there be only one rate of interest nor term deposits of varying durations in banks ?Arguments: I. No, People will refrain from keeping money for longer duration resulting into reduction of liquidity level of 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 arhument I is strong
B. if only argument II are strong
C. if either I or II is strong
D. if neither I nor II is strong and
E. if both I and II are strong.
Answer» B. if only argument II are strong


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