Statement–Argument — Is investing in insurance policies a wise step? Arguments: I) Yes; insurance ensures security and covers risks. II) No; by maturity the value of money falls considerably. Identify the strong argument(s).

Introduction / Context:
Insurance is primarily a risk-transfer product; some policies also have savings elements. A strong argument should address core purpose (protection) rather than conflating with investment returns alone.

Given Data / Assumptions:

• Insurance hedges against low-probability, high-impact losses.
• Inflation can erode nominal returns on savings-type policies.
• “Wise” depends on purpose: protection vs. pure investment.

Concept / Approach:
Argument I is strong because it cites the fundamental rationale for insurance—security and risk coverage. Argument II focuses on inflation at maturity, which critiques certain endowment plans as investments, but does not negate the protective value of insurance; it is partial and therefore weak as a general refutation.

Step-by-Step Solution:

Verification / Alternative check:
Term insurance (pure risk cover) provides high cover at modest cost irrespective of inflation concerns about maturity values.

Why Other Options Are Wrong:
“Either” incorrectly elevates II; “Neither” ignores I’s validity.

Common Pitfalls:
Judging insurance solely as an investment product instead of a protection tool.

Final Answer:
if only Argument I is strong.