Q) Statement— Should there be only one rate of interest for there deposits of varying durations i 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 i banks.
Options:
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