UPSC History Expansion Company and Bengal Nawabs Question Bank East India Company and Regional Powers

  • question_answer
    Given below are two statements, one labelled as Assertion [A] and the other labelled as Reason [R].
    Assertion [A]: With the acquisition of Diwani of Bengal the company directly organised the 'drain of wealth.
    Reason [R]: The company began to send to England the revenue of Bengal through what were called 'Investment'.
    In the context of the above two statements, which one of the following is correct?

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

    B)  Both A and R are true and 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: A

    Solution :

     With the acquisition of Diwani of Bengal the company directly organised the 'drain of wealth' as labelled by Dadabhai Naoroji.


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