Discussion
Statement: Should there be only one rate of interest for term deposits of varying durations in banks?
Arguments:
1. No. People will refrain from keeping money for longer duration resulting into reduction of liquidity level of banks.
2. Yes. This will be much simple for the common people and they may be encouraged to keep more money in banks.
Answer: A
Correct answer: Only argument I is strong
Argument 1 explains why the rates differ: a higher return for a longer deposit is what persuades people to leave money with a bank, and without it the banks would lose their long-term funds. Argument 2 offers simplicity, which is a convenience rather than a reason. Only I is strong.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development