Question

Read the following statements carefully:
Statement 1: During the British rule in India, the export surplus was utilised to import invisible items from Britain.
Statement 2: Indians paid for the expenses incurred by an office set up by the colonial government in Britain. In the light of above statements, choose the correct option from the following:

• A. Statement 1 is true and statement 2 is false.
• B. Statement 1 is false and statement 2 is true.
• C. Both statements 1 and 2 are true.
• D. Both statements 1 and 2 are false.

Hint:

The export surplus during the British rule was primarily used to fund invisible imports, such as services and payments to Britain.

Answer 1

The Correct Option is A

Step 1: Understanding the statements.
During British rule, the export surplus from India was used to finance the import of goods that were not physically visible, like services or royalties, which were referred to as invisible items.
Step 2: Analysis of Statement 2.
The second statement is incorrect because the expenses incurred by the British colonial government were not paid directly by Indians for their offices in Britain.
Step 3: Conclusion.
Therefore, Statement 1 is true, and Statement 2 is false. Final Answer:} Statement 1 is true and statement 2 is false.