Microtheme: British PoliciesXEconomic —
8 questions asked in Prelims in the past.

1. [2026] The artificially fixed rupee-sterling exchange rate prescribed by the Hilton-Young Commission (1926) was adopted by the British Government for which one of the following reasons?
   • (a) Aiding the flow of remittances from India and maintaining India's creditworthiness
   • (b) Providing support to Indian importers
   • (c) Encouraging export of cotton produce from India
   • (d) Preventing depreciation of the Rupee in terms of gold
   Correct Answer: (A) Aiding the flow of remittances from India and maintaining India's creditworthiness
2. [2020] Indigo cultivation in India declined by the beginning of the 20th century because of
   • (a) peasant resistance to the oppressive conduct of planters
   • (b) its unprofitability in the world market because of new inventions
   • (c) national leaders' opposition to the cultivation of indigo
   • (d) Government control over the planters
   Correct Answer: (B) its unprofitability in the world market because of new inventions
3. [2018] Economically, one of the results of the British rule in India in the 19th century was the
   • (a) increase in the export of Indian handicrafts
   • (b) growth in the number of Indian owned factories
   • (c) commercialization of Indian agriculture
   • (d) rapid increase in the urban population
   Correct Answer: (C) commercialization of Indian agriculture
4. [2018] The staple commodities of export by the English East India Company from Bengal in the middle of the 18th century were
   • (a) Raw cotton, oil-seeds and opium
   • (b) Sugar, salt, zinc and lead
   • (c) Copper, silver, gold, spices and tea
   • (d) Cotton, silk, saltpetre and opium
   Correct Answer: (D) Cotton, silk, saltpetre and opium
5. [2017] The Trade Disputes Act of 1929 provided for
   • (a) the participation of workers in the management of industries.
   • (b) arbitrary powers to the management to quell industrial disputes.
   • (c) an intervention by the British Court in the event of a trade dispute.
   • (d) a system of tribunals and a ban on strikes.
   Correct Answer: (A) the participation of workers in the management of industries.
6. [2014] What was/were the object/objects of Queen Victoria’s Proclamation (1858)?
   1. To disclaim any intention to annex Indian States.
   2. To place the Indian administration under the British Crown.
   3. To regulate East India Company’s trade with India.
   Select the correct answer using the code given below:
   • (a) 1 and 2 only
   • (b) 2 only
   • (c) 1 and 3 only
   • (d) 1, 2 and 3 only
   Correct Answer: (A) 1 and 2 only
7. [2011] With reference to the period of colonial rule in India, “Home Charges” formed an important part of the drain of wealth from India. Which of the following funds constituted “Home Charges”?
   1. Funds used to support the India Office in London.
   2. Funds used to pay salaries and pensions of British personnel engaged in India.
   3. Funds used for waging wars outside India by the British.
   • (a) 1 only
   • (b) 1 and 2 only
   • (c) 2 and 3 only
   • (d) 1, 2 and 3
   Correct Answer: (B) 1 and 2 only
8. [2010] Consider the following statements :
   1. The ‘Bombay Manifesto’ signed in 1936 openly opposed the preaching of socialist ideals.
   2. It evoked support from a large section of business community from all across India.
   Which of the statements given above is/are correct ?
   • (a) 1 only
   • (b) 2 only
   • (c) Both 1 and 2
   • (d) Neither 1 nor 2
   Correct Answer: (C) Both 1 and 2