UPSC History Expansion Company and Bengal Nawabs Question Bank Arrival of Europeans

  • question_answer
    Consider the following statements and select the correct answer from the codes given below:
    Assertion [A]: The European traders introduced the Hundi system in India.
    Reason [R]: The Hundis were prevalent in Mughal India.

    A)  Both A and R are true and R is the correct explanation of A.

    B)  Both A and R are true, but R is not the correct explanation of A.

    C)  A is true, but R is false.

    D)  A is false, but R is true.

    Correct Answer: D

    Solution :

     The Hundi system was not introduced by the European traders in India. This system, also called the hawala system, existed since the 8th century, probably between the Muslim and Arabic traders alongside the Silk Road. It was used as a protection against any form of theft. It was also probably used in the early medieval period for financing long-distance trade.

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