7
Question
Statement: Should there be only few banks in place of numerous smaller banks in India?
Arguments:
I. Yes. This will help secure the investor's money as these big banks will be able to withstand intermittent market related shocks.
II. No. A large number of people will lose their jobs as after the merger many employees will be redundant.
III. Yes. This will help consolidate the entire banking industry and will lead to healthy competition.
Statement: Should there be only few banks in place of numerous smaller banks in India?
Arguments:I. Yes. This will help secure the investor's money as these big banks will be able to withstand intermittent market related shocks.
II. No. A large number of people will lose their jobs as after the merger many employees will be redundant.
III. Yes. This will help consolidate the entire banking industry and will lead to healthy competition.
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Solution
The correct option is A None is strong
The security of the investor's money is not related to the size of the bank. Besides even after consolidation, the number of investors, their amounts and hence the duties shall remain the same and so no employees will be redundant. Reducing the number of smaller banks will also not affect the mutual competition among the banks. Thus, none of the arguments holds strong.
The security of the investor's money is not related to the size of the bank. Besides even after consolidation, the number of investors, their amounts and hence the duties shall remain the same and so no employees will be redundant. Reducing the number of smaller banks will also not affect the mutual competition among the banks. Thus, none of the arguments holds strong.
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