History · Colonial Economy
UGC NET December 2021 History (Shift-II)
The Dadni system became prevalent in medieval India because:
AIt gave impetus to both inland and foreign trade ✓ Correct
BOf the desire of European companies to reduce artisans to the level of wage earners
COf a crisis in the Mughal economy due to continuous warfare under Aurangzeb
DOf a shortage of raw materials due to recurring famines in medieval India
Correct answer: (A) It gave impetus to both inland and foreign trade — It gave impetus to both inland and foreign trade, so that is the answer.
Explanation
★It gave impetus to both inland and foreign trade, so that is the answer.
★The Dadni system became prevalent because it gave impetus to both inland and foreign trade.
★The Dadni system was a phase of business management of the English East India Company in Bengal in the eighteenth century.
★The company engaged local merchants to procure goods from the market on its behalf.
★Advances, or dadan, were given to these merchants and artisans in advance.
★So the Dadni system gave impetus to both inland and foreign trade.
Want more like this? Create a free account to practise a full test, track your progress, and get spaced-repetition review.
Shared by Mcqkart · via Mcqkart.in