Energy security — Should India build a large strategic oil reserve? Statement: Should India create a huge oil reserve like some Western countries to face future difficulties? Arguments: I. No. It would block huge foreign exchange and keep money idle. II. Yes. It would help India withstand shocks of sudden price spikes due to unforeseen circumstances.

Introduction / Context:
The issue is strategic petroleum reserves (SPR) for energy security. We must weigh fiscal concerns against resilience to supply/price shocks.

Given Data / Assumptions:

• Oil price shocks and supply disruptions can harm macroeconomic stability.
• Reserves are assets, not “idle money,” and can be drawn down in crises.
• Argument strength is judged on policy logic and general applicability.

Concept / Approach:
A strong argument recognizes risk management and national security. A weak argument mischaracterizes reserves as dead capital without acknowledging benefits.

Step-by-Step Solution:

Verification / Alternative check:
Many nations maintain SPRs precisely for volatility and embargo scenarios; this validates II.

Why Other Options Are Wrong:

• I strong / Either / Neither / Both: inconsistent with the clear superiority of II.

Common Pitfalls:
Confusing liquidity preference with strategic insurance; risk mitigation has a measurable economic value.

Final Answer:
Only argument II is strong