In This Post we are providing Chapter- 7 DIRECTING NCERT MOST IMPORTANT QUESTIONS for Class 12 BUSSINESS STUDIES which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter
NCERT MOST IMPORTANT QUESTIONSON DIRECTING
1. Explain in one sentence how directing initiates action in management.
Ans. Directing initiates action by ordering employees to attain the desired goal of an organisation.
2. What is meant by directing? Ans. Directing is the process of instructing, guiding and inspiring people in the organisation to achieve its objectives.
3. Give any two elements of directing. Ans. (i) Supervision (ii) leadership.
4. State the element of directing which helps in implementing the principle of scalar chain. Ans. Communication helps in implementing the principle of scalar chain.
5. State any one characteristic of directing. Ans. Directing helps to initiate action by the people in the organisation towards attainment of desired objectives.
6. How directing helps in efficient and effective functioning of the organisation? Explain by giving any three points. Ans. Directing helps in efficient and effective functioning of management because: (i) It integrates employees Directing integrates employees’ efforts in the organisation in such a way that every individual’s efforts contributes to the welfare of the organisation. Thus, it ensures that employees work efficiently for the attainment of goals.
(ii) It improves efficiency Directing guides employees to fully realise their potentials and capabilities. Through this function, managers utilise the potential of employees and persuade them to work with the best of their ability and contribute their maximum efforts towards the achievement of organisational objectives. (iii) It facilitates change Business environment is changing very frequently, but the people generally have a tendency to resist change. In this context, directing helps manager to persuade his subordinates to carry out changes from time to time to cope with changes in the environment as the changes are necessary to adapt and it is the need of modern business
7. Explain the meaning and any three characteristics of directing.
Ans. Directing refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation through effective communication, so that their efforts result in achievement of organisational objectives. Characteristics of directing are as follows: (i) Initiating process It involves giving orders and instructions to the employees and thereby decisions are converted into actions. (ii) Pervasive function The directing function is performed by all managers at all levels to achieve the organisational goals. (iii) A continuous process It is an activity that takes place throughout the life of an organisation, irrespective of people occupying managerial position
8. Directing is the heart of the management process. Do you agree? Give any four reasons in support of your answer.
Ans. Yes, I do agree with this statement. Directing may be regarded as the heart of the management process; Its importance may be explained under the following points (i) Initiates action Directing helps to initiate action by people in the organisation towards attainment of desired objectives, e.g. if a supervisor guides his subordinates and clarifies their doubts in performing a task, it will help workers to achieve work targets given to them. (ii) Integrates employees’efforts Directing integrates employees’ efforts in the organisation in such a way that every individual effort contributes to the attainment of organisational objectives. Thus, it ensures that the individuals work for organisational goals. (iii)Improves efficiency Directing guides employees to fully realise their potential and capabilities by motivating and providing effective leadership. A good leader can always identify the potential of his employees and motivate them to extract work up to their potential. (iv)Brings balance and stability in the organisation Effective directing helps to bring stability and balance in the organisation since, it fosters cooperation and commitment among the people and helps to achieve balance among various group activities and the departments.
9. Directing is not required at all in management of organisation. Do you agree? Give two reasons in support of your answer. Ans. No, I do not agree with the above statement. Directing is required in organisation as it initiates the action of people towards attainment of desired goals. Reasons (i) Initiates action Directing helps to initiate action by people in the organisation towards attainment of desired objectives, e.g. if a supervisor guides his subordinates and clarifies their doubts in performing a task, it will help workers to achieve work targets given to them. (ii) Integrates employees’efforts Directing integrates employees’ efforts in the organisation in such a way that every individual effort contributes to the attainment of organisational objectives. Thus, it ensures that the individuals work for organisational goals. (iii)Improves efficiency Directing guides employees to fully realise their potential and capabilities by motivating and providing effective leadership. A good leader can always identify the potential of his employees and motivate them to extract work up to their potential. (iv)Brings balance and stability in the organisation Effective directing helps to bring stability and balance in the organisation since, it fosters cooperation and commitment among the people and helps to achieve balance among various group activities and the departments.
10. Explain how directing helps in effective and efficient functioning of the organisation. or What is meant by directing as a function of management? Describe any four points of its importance. or ‘Every action in the organisation is initiated through directing’. Explain any four points of importance of directing in the light of this statement. Ans. Directing refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation through effective communication so that their efforts result in achievement of organisational objectives. The scope of directing is very wide. It consists of all those activities by which a manager influences the behaviour of his subordinates to secure desired performance from them. According to William Newman, ‘Directing deals with the steps, a manager takes to get subordinates and others to carry out plans’. Importance of directing Its importance may be explained under the following points (i) Initiates action Directing helps to initiate action by people in the organisation towards attainment of desired objectives, e.g. if a supervisor guides his subordinates and clarifies their doubts in performing a task, it will help workers to achieve work targets given to them. (ii) Integrates employees’efforts Directing integrates employees’ efforts in the organisation in such a way that every individual effort contributes to the attainment of organisational objectives. Thus, it ensures that the individuals work for organisational goals. (iii)Improves efficiency Directing guides employees to fully realise their potential and capabilities by motivating and providing effective leadership. A good leader can always identify the potential of his employees and motivate them to extract work up to their potential. (iv)Brings balance and stability in the organisation Effective directing helps to bring stability and balance in the organisation since, it fosters cooperation and commitment among the people and helps to achieve balance among various group activities and the departments.
In This Post we are providing Chapter- 8 CONTROLLING NCERT MOST IMPORTANT QUESTIONS for Class 12 BUSSINESS STUDIES which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter
NCERT MOST IMPORTANT QUESTIONSON CONTROLLING
Question 1
Why is controlling considered to be a backward looking? Ans. Controlling involves evaluation of past activities to find out deviations from standards so it is a backward looking function.
Question 2. Mention the important features of the control function of management. Answer: Characteristics of Control: The Control function of management has the following features: 1. Controlling is a continuous Process: It involves continuous measurement and review of actual performance and results in corrective action based on this review. It may lead to changes in planning, staffing, organizing, etc.
2. Controlling is looking Back: Control leads to the appraisal of past activities. Thus, it is looking back. The shortcomings in the performance of various individuals and departments are revealed by the control process. This is known as feedback information. It will help in knowing the reasons for poor performance. Corrective action can be initiated on the basis of feedback information.
3. Control is forward-looking: Control is said to be forward-looking. It is related to the future as the past cannot be controlled. It is usually preventive as the preserve of the control system leads to minimizing wastages, losses, and deviations from standards. It should be noted that control does not curtail the rights of individuals. It simply keeps a check on the Performance of individuals.
4. Control is Action-Oriented: Control implies taking corrective measures, whenever required. Action is the essence of control. The purpose of control is achieved only when corrective action is taken on the basis of feedback information. If the control does not lead to any action, then a manager can’t ensure actual performance as per standards. A good system of control facilities timely action so that there is minimum wastage of resources, time, and energy.
5. Control is a Pervasive function: It is a basic function of every manger irrespective of his level of authority. It is a follow-up action to the other function of management. Every manager is responsible for controlling the activities of those working under him and taking necessary action whenever necessary.
Question 3. Explain the term Management by Exception. Answer: Management by exception: Effective control can be achieved if critical or key points are identified and close attention is directed to adjustment at these points. This is known as ‘control by exception’. According to this principle, only significant deviations from the standards require management’s attention as they constitute exceptions. An attempt to go through all deviations tends to increase the workload of the Manager and decrease attention on important problems.
For instance, if postal expenses mqt&ase by twenty percent, the deviation is too insignificant to require managerial attention. On the other hand, if labor costs rise by twenty percent, they should receive immediate managerial attention.
The Principle of Management by exception implies that minor deviations from the standards may be ignored or given less attention. This would conserve managerial time, effort, and energy which could be utilized on important matters. But whenever deviations from standards are higher than the accepted level, management must take corrective measures to deal with the situation.
Question 4. Explain in brief the term Responsibility Accounting. Answer: Responsibility Accounting is a system of control where responsibility is assigned for the control of costs. The persons are made responsible for the control of costs. Proper authority is given to the persons so that they are able to keep up their performance. In case the performance is not according to the predetermined standards then the persons who are assigned this duty will be personally responsible for it.
In responsibility accounting, the emphasis is on men rather than on systems e.g. if Mr. A, the manager of a department, prepares the cost budget of his department then he will be made responsible for keeping the budget under control. A will be supplied with full information of cost incurred by this department. In case the cost incurred is more than the budgeted costs, then A will try to find out reasons and take necessary corrective measures. A will be personally responsible for the performance of his department.
Question 5. Explain in brief the term Zero base budgeting. Answer: Zero Based Budgeting Whenever a budget is prepared, past records and experience are taken into consideration. The new budget is prepared on the basis of budgets of the previous period. This method is known as ‘Based Budgeting’. On the contrary, the concept of zero-base budgeting considers the future not a mere projection of the past. As the environment is changing fast, the need to forecast systematically future events arise. For the growth and survival of any business organization, these changes need to be adopted.
Zero-base budgeting is the latest technique and it is meant for a particular period of time. It doesn’t prepare an altogether new budget. Normally, the previous year’s performance is taken as a base for the current year’s budget in budgeting techniques. But in zero-base budgeting, every year is taken as a new year, and the previous year is not taken as a base.
Zero is taken as a base and all budget proposals are considered in the light of present conditions. In zero-based budgeting, the amount to be spent on various activities will depend upon justification given by the manager.
Hence, zero-based budgeting provides flexibility and freedom in allocating the resources and the chances of repletion of weaknesses of the previous year are reduced.
Question 6. Explain the Modern technique of control by the management information system (MIS) a computer-based technique. Answer: Management information system: A management information system (MIS) is a computer-based information system that provides information and support for effective managerial decision-making. A decision-maker requires up to date, accurate and timely information. MIS provides the required information to the managers by systematically Processing massive data generated in an organization. Thus, MIS is an important communication tool for managers.
MIS also serves as an important control technique. It provides data and information to the managers at the right time so that appropriate corrective action may be taken in case of deviations from standards.
MIS offers the following advantages to Managers:
It facilitates the collection, management, and dissemination of information at different levels of Management and across different departments of the Organisation.
It supports planning, decision making, and controlling at all levels.
It improves the quality of information with which a manager works.
It ensures cost-effectiveness in managing information.
It reduces information overload on the managers as only relevant information is provided to them.
Question 7. Distinguish between Planning and Control. Answer: A comparison of Planning and Control:
Planning
Control
1. Planning emphasizes more on non-personal, abstract long-range problems.
1. Control emphasizes more and long-range problems.
2. Planning is based on estimates
2. Control is based on estimates.
3. Planning is done by top-level executives.
3. Control is done by top-level executives.
4. Under Planning, the evaluation of results is very difficult.
4. Under Control, the evaluation of results is very difficult.
5. Determination of results takes a very long time.
5. Determination of results takes a very long time.
Question 8. What are the advantages of Management audit? Answer: The main advantages of Management audit are as follows.
It helps to locate present and potential deficiencies in the performance of management functions.
It helps to Improve the Control system to an Organisation by continuously monitoring the performance of Management.
It Improves Coordination in the functioning of various departments so that they work together effectively towards the achievement of organizational objectives.
It ensures updating of existing managerial .policies and strategies in the light of environmental changes.
Conducting a management audit may sometimes pose a problem as there are no standard techniques of management audit. Also, management audit is not compulsory under any law. Enlightened managers, however, understand its usefulness in improving the overall performance of the organization.
Question 9. Explain the essential features of a sound control system. (Imp. Q) Answer: Essential features of a sound control system: A good control system has the following essential features: 1. Clear out objectives: Before Planning a control system, it is essential to know clearly the objectives it will tend to achieve. The standards of performance should be based on these objectives. Thus, the control system should be directed towards the detection of early deviations from the standards to permit effective corrective action. If the standards are arbitrary or subjective in nature, they will not be able to measure deviations properly. Thus, the purpose of control will be lost.
2. Suitability: Control techniques should be appropriately designed to suit the nature of the activities being controlled. This means that different types of activities need different types of control techniques. The control technique should be tailored to reflect the performance of all types of operations, say, production or sales.
It is also essential that the overall control system should be appropriate for the organization. A control system that is good for a small organization may be inadequate for a big organization.
3. Simplicity: A good system of control should be simple and easy to understand. The employees must know what is expected of them and how their performance will be evaluated. If the employees don’t understand the standards of performance properly, the actual performance might turn out to be very poor.
4. Economy: The system of control must be worth its costs. It must justify the expenses involved. A control system is justifiable if the savings anticipated from it exceed the costs of its working. Small enterprises cannot afford elaborate control systems which are very costly. As far as possible, unnecessary paperwork and reports should be avoided
5. Flexibility: A good control system must keep pace with the continuously changing environment. It must be responsive to changing conditions. It should be adaptable to new developments such as the introduction of new methods, materials, and changes in the requirements of the customers. If there is a change in any plan, the control system should be capable of absorbing such change.
6. Forward-looking: The system of control should be forward-looking in the sense that it should detect and report deviations promptly. Timeless is the essence of control. Ideally, deviations should be anticipated and preventive action should be taken. More realistically information on deviations should be monitored and feedback to the system immediately so that corrections are effected with minimum cost and inconvenience.
7. Suggesting Corrective Action: Merely pointing out deviations is not sufficient in a good control system. It must lead to taking corrective action to achieve the desired objectives. It may result in taking suitable action against the employees, giving them training, ensuring effective supervision, improving communication, revising standards, etc.
8. Concentration on exceptions: This is also known as ‘Control significant deviations from standards require management’s attention as they constitute exceptions. An attempt.to go through all deviation tends to increase unnecessary efforts and to decrease attention on important problems.
9. Strategic Point Control: Small deviations in certain cases may have greater significance than larger ones in other cases, for example, deviation of ten percent in budgeted labor cost may be more troublesome to a manager than a deviation of twenty-five percent in budgeted postal charges. The Principle of strategic point control states that effective control can be achieved if critical, key, or strategic points can be identified and close attention directed to adjustment at those points. In fact, strategic point control is an extension of control by exception.
Question 10. Explain the relationship of the controlling the function of management with other functions of management. Answer: Relationship of control with other Function of Management: We know that control is the last function of management because its need arises only after performing the functioning of planning, organizing, and directing. But being the last function does not lower down its importance as compared to other functions. Control is very must linked to other functions of management. In fact, the success of all other functions depends upon effective control,
The relation of Control with other managerial functions is explained below: 1. Relationship of Control with Planning: There is a close relationship between the Control and Planning functions of Management. Planning is the basis of Control, The control process involves determining the standards, comparison of the deviations, and taking corrective action to remove such deviations. In this process, planning provides such standards against which the progress of the actual performance is compared.
Thus where there is no plan there can be no basis for control. HG Hick has rightly said that “Planning is clearly a prerequisite for controlling. It is utterly foolish to think that controlling could be accomplished without planning there is no predetermined understanding of the desired performance.
On the other hand, plans will also prove mere imaginations in the absence of control. Because in such a case there will be no one to check whether or not everything is being done according to plans. Also in the absence of control, there will be no corrective action to direct the actual progress towards the accomplishment of plans.
Thus planning is meaningless without control, and control is aimless without planning.
2. Relationship of control with the organization: Control can be meaningful only when the person responsible for deviations is identified and is held responsible. This is possible only because of the organization because it is only in an organization that the authority and responsibility of each one are defined. In the absence of organization, neither the person responsible for committing the mistakes will be identified nor any action can be taken against him. Hence, the same mistakes will be repeated time and again. As such, effective organization is essential for effective control.
Similarly, Organisation is also dependent upon control because organizing is to assign work to individuals and give them authority and fix responsibility in case of mistakes. Since fixing of responsibility’ is possible only through Control, therefore effective control is essential for effective organization.
3. Relationship of control with Direction: Direction removes the difficulties in the way of various functions even before they are reviewed in order to control their progress. Direction makes the employee more capable and enthusiastic towards their work and provides them with adequate guidance training and supervision. Thus direction and control are interlinked with each other.
4. Relationship of control with other functions of Management: Control has deep relations with other functions of management as well. Communication helps in comparison of actual results with the standards by providing timely information of actual results with the standards by providing timely information of actual progress. Decision-making helps in determining the way to remove the deviations and the type of corrective actions to be undertaken.
Motivation helps in encouraging people to work towards the achievement of organizational objectives. Under control performance of each person is evaluated and efficient persons are motivated by providing them financial and non-financial incentives whereas inefficient employees are provided training to remove their deficiencies. Thus, it is clear that all the functions of management are inter-linked.
The relationship of various managerial functions is depicted through the following diagram:
From the above diagram, it is clear that the relationship between control and other managerial function is so deep that it is impossible to think of them separately. Every function affects the control and gets affected by it.
In This Post we are providing Chapter- 9 FINANCIAL MANAGEMENTNCERT MOST IMPORTANT QUESTIONS for Class 12 BUSSINESS STUDIES which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter
NCERT MOST IMPORTANT QUESTIONSON FINANCIAL MANAGEMENT
Q1) When is financial leverage considered favorable? Ans) Financial leverage is considered favourable when return on investment is higher than the cost of debt. Q2) why does financial risk arise? Ans) Interest on borrowed fund have to be paid regardless of whether or not you firm has made a profit. Moreover borrowed fund have to be repaid after a fixed time and it carries a charge on assets. This gives rise to financial risk. Q3) How does production cycle effect working capital? Ans) working capital requirement is higher with longer production cycle. Q4) The board of Directors has asked you to design the capital structure of the company. Explain any sin factors that you would consider whiledoing so. [6] Ans) For design the capital structure of the company six factors are as following:- 1) Cash Flow Position. 2) Interest coverage ration(ICR) 3) Debt Service coverage ratio(DSCR) 4) Return on investment (ROI) 5) Cost of debt 6) Tax rate. Q5) Every manager has to take three major decisions while performing the finance function. Ans) A manager take three following major decisions:- 1) financing Decision. 2) Investment Decision. 3) Dividend Decision. Q6) What do you call the capital needed for day to day operations? Explain any 5 factors affecting such capital needs. Ans) Capital needed for day to day operations is called working capital.{explain any 5 factors affecting such capital needs]. 1) Nature of business 2) Scale of operations 3) Seasonal Factors 4) Production cycle 5) Credit allowed Q7) The directors of a company have decided to expand their business activities by increasing the stock of raw materials and finished goods atan estimated cost of Rs. 50 lakhs, Describe the various ways open to thecompany to raise necessary finance for the purpose. Ans) the company can raise necessary finance for the purpose of expansion through the following function. (a) Issue of shares (b) Issue of debentures (c) Loans from banks and financial institutions. (d) Retained earnings. Q8) A capital budgeting decisions is capable of changing the financial fortune of a business. Do you agree? Why or why not? Ans) hint Yes, I agree to this statement because of the following importance of capitals budgeting decisions. (a) long term growth and effects. (b) Large amt of funds involved (c) Risk involved (d) Irreversible decisions. Q9) Are the share holders of a company likely to gain with a debt component in the capital employed ? Explain with the help of an example? Ans) The shareholders of a company are very likely to gain with debt component in the capital employed by way of trading On equity as it increases the earning per share(EPS) of the share holders[( Explain trade on equity with one example)]. Q10) state whether the working capital requirements of businessmanufacturing the following items are big or small. Justify yourstatement. (a) Coolers (c) Sugar (b)bread (d) Locomotives (e) Furniture manufacturing against orders. Ans) Requirements of working capital for the mentioned business will be: (a) Bread Requirements of working capital will be less because it has quick cash turnover. (b) Sugar;- working capital required for manufacturers will be more as ration of raw material cost to total cost is more. (c) Coolers:- working capital required for manufacturers of cooler will be more because it is a seasonal product. (d) Furniture:- Requirements of working capital for a manufacturer of furniture manufactured against specific order is less as it doesn’t requires large stock. (e) Motor car;- Requirements of working capital for a manufacturer of locomotives will be more because gestation period is more.
In This Post we are providing Chapter- 10 FINANCIAL MARKETNCERT MOST IMPORTANT QUESTIONS for Class 12 BUSSINESS STUDIES which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter
NCERT MOST IMPORTANT QUESTIONSON FINANCIAL MARKET
1.Give the meaning of the following money market instruments (i)Certificate of deposit; and (ii)Commercial bill Ans. (i) Certificate of deposit These are short-term, unsecured, negotiable instruments in bearer form.They are issued by commercial banks or development financial institution to individuals, corporations and companies. These are issued generally in times of tight liquidity when the deposit growth of banks is slow but the demand for credit is high, to mobilise large amounts of money for short periods. (ii) Commercial bill A commercial bill is a bill of exchange used to finance the working capital requirements of business firms. It is a short-term negotiable, self liquidating instrument, whijch is used to finance the credit sale of the firms. When goods are sold on credit, seller draws the bill of exchange on the buyer. On being accepted by the buyer, it becomes a trade bill, which is a marketable instrument. On being discounted from the bank, the trade bill becomes the commercial bill.
2.Give the meaning of the following money market instruments (i)Treasury bill; and (ii)Call money Ans. (i) Treasury bill Also known as zero coupon bond, an T-Bill is issued by RBI on behalf of Central Government to meet its short-term requirement of funds It is issued in form of promissory note. They are highly liquid and have negligible risk. They are issued at discount and redeemed at par, e.g. 91 days, treasury bill of face value of ? 1,00,000 is purchased at ? 96,000 and at the maturity investor gets ? 1,00,000, ? 4000 being the interest received by him. (ii) Call money Call money is a short-term finance repayable on demand, with a maturity of 1 to 15 days. It is used for inter bank transactions. Banks have to maintain a minimum cash balance known as Cash Reserve Ratio. RBI changes this ratio from time to time. Call money is a method by which banks borrow from each other to be able to maintain Cash Reserve Ratio. The interest paid on call money loans is called call rate, which is vary volatile and changes even from hour to hour.
3.Financial market plays an important role in the allocation of scarce resources in an economy by performing various functions. Explain any three functions of financial market. (Delhi 2014) Ans. Financial market plays an important role in the allocation of scarce resources in an economy by performing these important factions: (i) Mobilisation of savings and channeling them into the most productive uses A financial market facilitates the transfer of savings from savers to investors. Thus, it will help in channelising surplus funds into the most productive uses. (ii)Facilitating price discovery Interaction between supplier and investor helps to establish a price for the financial asset which is being traded in that market. (iii) Providing liquidity to financial assets Financial market facilitates easy purchase and sales of financial assets. In doing so, they provide liquidity which means these assets are converted into cash whenever required.
4.What is meant by primary market? Explain any two methods of floating new issues in the primary market. Ans. Primary market is the market where securities are being issued for the first time. Therefore, it is also known as ‘New Issue Market’ (NIM).
Methods of floatation are as follows: (i) Offer through prospectus Under this method, company issues a prospectus to inform and attract general public. In prospectus, company provides details about the purpose for which funds are being raised, past financial performance of the company, background and future prospects of company. (ii) e-IPOs It is the new method of issuing securities through online system of stock exchange. In this, company has to appoint registered brokers for the purpose of accepting applications and placing orders. The issuer company has to apply for listing of its securities and the leading manager coordinates all the activities of these issues through various intermediaries.
5.Nature of money market can be well explained with the help of its features. State any three such features of money market. Ans. The features of the money market are: (Any three) (i) Instruments Money market raises funds by wide variety of short-term securities such as call money, treasury bills, trade bills, commercial paper, certificate of deposit, etc. (ii) Duration Money market provides funds for a period of less than one year. (iii) Participant The participants in the money market are large institutional investors such as Reserve Bank of India (RBI), commercial banks, financial institutions, non-banking finance companies, state government, large corporate houses, etc. (iv)Investment outlay Investment in money market entails huge sum of money as the instruments are quite expensive. (v)Liquidity Money market instruments enjoy a high degree of liquidity as there is a formal arrangement for it. The Discount Finance House of India (DFHI) has been established for the specific objective of providing a ready market for money market instruments. (vi)Expected return The expected rate of return of the money market is generally low as money is invested for a short duration.
6.Nature of a capital market can be well explained with the help of its features. State any three such features of a capital market. Ans. The features of a capital market are: (Any three) (i) Link between savings and investment opportunities Capital market is a crucial link between saving and investment process. The capital market transfers money from savers to entrepreneurial borrowers. (ii) Long-term funds Capital market is concerned with medium-term and long-term funds. Funds raised through capital market are used for long-term financial needs such as procurring plant, machinery, land, etc. (iii) Participants Both individual investors and institutional investors participate in capital market. (iv) Instruments The main instruments of a capital market are equity shares, preference shares, bonds and debentures.
7.Differentiate between capital market and money market on the basis of the following (i)Meaning (ii) Liquidity (iii)Safety (iv) Expected return (v) Duration or Differentiate between capital market and money market on the basis of the following (i)Participants (ii) Instruments (iii)Duration (iv) Investment outlay (v) Liquidity (All India 2014 C) Ans. Differences between capital market and money market are:
8.What is meant by capital market ? Name the two types of capital market and differentiate between the two on any four basis or Difference between ‘Primary Market’ and ‘Secondary Market’ on any five basis. (Ail India 2014) Ans. Capital market refers to facilities and institutional arrangements through which long-term fund, both debt and equity are raised and invested. The capital market consists of development banks, commercial banks and stock exchanges. The two types of capital market are (i) Primary market or new issue market (NIM) (ii) Secondary market or stock exchange
9.Financial market plays an important role in the allocation of scarce resources in an economy by performing many important functions. Explain any four such functions. or Explain any three functions of financial market. or Explain any four functions of financial market. or What is meant by financial market? Explain any two functions of financial market. or Describe any four functions of financial market. Ans. Meaning of financial market It is a link between the savers and the borrowers. This market transfers money or capital from those who have surplus money to those who are in need of money. The functions of financial market are: (i) Facilitating price discovery In the financial market, households are suppliers of funds and business firms represent the demand. The interaction between them helps to establish a price for the financial asset which is being traded in that particular market. (ii)Provides liquidity to financial assets The investors can invest their money, wherever they desire, in securities through the medium of financial market and convert them into cash by selling their financial assets through the mechanism of financial market. (iii)Reduce the cost of transactions Financial market provides complete information regarding price, availability and cost of various financial securities. So, investors and companies do not have to spend much on getting this information. (iv)Mobilisation of savings and channelising them into most productive uses A financial market facilitates the transfer of savings from savers to investors. It gives savers a wide choice of making investments and thus, channelise surplus funds into productive uses.
10.Explain any four methods of floating new issues in the primary market. or Explain any four methods of flotation of new issues in the primary market. Ans. There are various methods of floating new issues in the primary market: (Any four) (i) Offer through prospectus Under this method, company issues a prospectus to inform and attract general public. In prospectus, company provides details about the purpose for which funds are being raised, past financial performance of the company, background and future prospects of company. (ii)Offer for sale Under this method, securities are not issued directly to the public but are offered for sale through intermediaries like issuing houses on stock brokers at a fixed price. (iii)Private placement Under this method, company sells the securities to some selected institutional investors (like UTI, LIC, etc) and some individuals. (iv) e-IPOs It is the new method of issuing securities through on line system of stock exchange. In this, company has to appoint registered brokers for the purpose of accepting applications and placing orders. (v)Right issue This is a right (or privilege) to existing shareholders to subscribe to a new issue of shares in proportion to the number of shares held by them.
Q1. What were the ideals expressed in the Objectives Resolution? Answer: Jawahar Lai Nehru presented the Objectives Resolution in the Constituent Assembly on 13 December, 1946. It gave a brief account of the ideals and objectives of the Constitution. These are following:
India was declared an independent sovereign republic.
Justice, equality and fraternity were assured to all the citizens of India.
Adequate safeguards were provided to minorities. It also referred to the well-being of the backward and depressed classes.
It was made an objective that India would combine the liberal ideas of democracy with the socialist idea of economic justice.
India would adopt that form of government which would be acceptable to its people. No imposition from the British would be acceptable by the people of India.
India would work for peace and human welfare.
Q2. How was the term minority defined by different groups? Answer:The minority was defined by different groups in the following ways :
N.G. Ranga, a socialist who had been a leader of the peasant movement, stated that the term minorities be interpreted in economic terms. He emphasised that the real minorities were the poor and the downtrodden i.e., the masses of this country. These include tribal people and poor villagers who are exploited by moneylenders, zamindars, malguzar and other people.
Jaipal Singh, an Adibasi, stated that tribes were not a numerical minority but they needed protection. They have been disgracefully treated and neglected for the last 6,000 years. They have been perceived as primitive and backward.
Dakshayani Velayudhan from Madras refused to believe that seventy million Harijans were to be considered as a minority but their social disabilities should be removed.
J. Nagappa from Madras pointed out that numerically the Depressed Castes were not a minority. They formed between 20 and 25 per cent of the total population. They suffered due to their systematic marginalisation.
Q3. What were the arguments in favour of greater power to the provinces? Answer:K.Santharam, a member from the Madras defended the rights of the states in the Constituent Assembly. He emphasised the need to strengthen the states. He was not in favour of vesting more powers with the Centre. He was of the opinion the Centre would not be able to perform its duties efficiently in case it is over-burdened. The Centre will become automatically strong if all states are made stronger. He advocated that the Centre should be given less powers and states should be given more powers. Proposed allocation of powers between the Centre and States was also a matter of concern for K. Santharam. He felt that such a distribution of power would cripple the states.
Q4. Why did Mahatma Gandhi think Hindustani should be the national language? Answer: Mahatma Gandhi thought that Hindustani should be the national language. It was a blend of Hindi and Urdu and was a popular language of a large section of the people of India. Over the years it had incorporated words and terms from very many different sources. It was understood by people from various regions. Mahatma Gandhi thought that this multi-cultural language would be the ideal language of communication between diverse communities. It could unify the Hindus and Muslims, and people of the north and the south. He also stated that to confine oneself to Hindi or Urdu would be a crime against intelligence and the spirit of patriotism.
Q5. What historical forces shaped the vision of the Constitution? Answer: Following are some historical forces which shaped the vision of the Constitution. Certain basic values were accepted by all national leaders as a result of the Nehru Report and the Fundamental Rights Resolution passed the Karachi session of the Indian National Congress. Universal Adult Franchise, Right to Freedom and Equality and Protection of minority rights were these basic values. After the results of 1937 elections, the Congress and other political parties were able to form the governments in the provinces. This experience with legislative and political institutions helped in developing an agreement over institutional design. Many colonial laws were also the sources of the Indian Constitution. Government of India Act, 1935 was a major one. This wray, the Indian Constitution adopted many institutional details and procedures from the colonial laws.
The French Revolution also inspired the makers of the Constitution. The working of the Parliamentary democracy in Britain and the Bill of Rights in the USA also inspired the framers of the Constitution.
Q6. Discuss the different arguments made in favour of protection of the oppressed groups. Answer: It was felt that oppressed classes like tribals and untouchables required special attention and safeguards to enable them to raise their status and come to the level of the general population.
Tribals were regarded backward. They were not accepted well in society. They were almost rejected. For their upliftment they were required to be assimilated in the society. They were also required to be brought into the mainstream of the society. So special protection and care were offered to them.
In society untouchables were treated as labourers. Society used their services but did not give them respectable position. They were treated as outcast and kept isolated. Their sufferings were due to their systematic marginalization.
Lands of the tribals have been confiscated and had been deprived of their forests and pastures. Tribals and untouchables had no access to education. They did not take part in administration. So some legislations were required to improve their conditions.
Q7. What connection did some of the members of the Constituent Assembly make between the political situation of the time and the need for a strong Centre? Answer:On 15 of August 1947, India became independent from the British rule. It was declared an independent country. But this independence was painful also. India was divided and Pakistan came into existence. This partition was marred with communal violence. So many leaders like Jawaharlal Nehru and Ambedkar favoured a strong Central Government for India. For their view they referred riots and violence that were ripping the nation apart.
It was also felt that a strong centre was the need of the hour. Most of the members of the constituent Assembly also supported this view. Any deviation from this might jeopardize the interests of the nation. Peace, prosperity and political stability was not possible in case of a weak centre. It would fail to coordinate vital matters of common concern.
So Gopalaswami Ayyangar appealed to all the members of the Constituent Assembly that” the Centre should be made as strong as possible.” It was also felt that only a strong and united centre could plan for the well-being of the country. Balakrishna Sharma also stated the similar view. It was also felt that it would mobilize all the resources , ensure strong defence against any aggressor and establish a proper administration. Almost all the members of the Constituent Assembly supported a strong central government. They felt that it was necessary to check chaos, communal violence and to usher economic development of the country.
Q8. How did the Constituent Assembly seek to resolve the language controversy? Answer:India is very big country. It has many different regions. Different varieties of people live here and speak different languages. So for a new nation like India it was necessary to give proper attention to the intricacies of different languages.
Hindustani: Hindustani was a choice for the Congress and Mahatma Gandhi. Congress had already decided to adopt Hindustani as the national language of the country. Mahatma Gandhi was also in favour of adopting Hindustani as the national language and supported strongly for this view. He argued that everyone should speak in a language which is understood by most of the common people. Hindustani was not a new language. It was a blend of Hindi and Urdu. It was enriched by the interaction of diverse cultures and spoken by most of the people of the country.
Hindi: R.V. Dhulekar pleaded in favour of Hindi for adopting it as the national language. He came from the United Province and a Congressman. He wanted that Hindi should be used as language of constitution-making. He even said that those who did not know Hindustani were not worthy to be the members of the Constituent Assembly.
Report of the Language Committee: The language Committee of the Constituent Assembly suggested a compromise formula in its report. It suggested that Hindi in Devnagri script should be the official language of the country and tried to resolve the issue. It also suggested that transition from English to Hindi should be gradual. It was also suggested that during first fifteen years since adoption of the Constitution, English would continue to serve as for official purposes. So it was clear that the Language Committee referred Hindi as the official language not the national language.
Threat to South: The members of the Constituent Assembly who belonged to the Southern India were apprehensive of the view. They felt that Hindi would be a threat to their provincial languages. Shankar Rao from Bombay. T.A. Ramalingam Chettiar and Mrs. G. Durgabai of Madras suggested that issue of language required utmost care and needed to be handled efficiently and dextrally. Hindi should not be thrust upon the people of South India.
Q1. What did the Muslim League demand through its resolution of 1940? Answer: An important resolution was passed by the Muslim League on 23rd March, 1940. This resolution was drafted by Sikandar Hayat Khan, the leader of the Unionist Party and the Punjab Premier. Through this, the Muslim League demanded an autonomy for the Muslim -majority areas of the subcontinent. But in the resolution there was no mention either of the partition of the country or the creation of Pakistan. Sikandar Hayat Khan was opposed to the idea of the formation of Pakistan. He opined of a loose federation with a lot of autonomy for the states.
Q2. Why did some people think of Partition as a very sudden development? Answer: Some people thought that the Partition was sudden development due to the following factors :
On 23 March 1940 in the Resolution, the Muslim League had demanded only a measure of autonomy for the Muslim – majority areas of the subcontinent. Later on in the Punjab Assembly Sikandar Hayat Khan, Punjab Premier, who had drafted the resolution reiterated his plea for a loose but united confederation with considerable autonomy for the confederating units.
The period between the above resolution and the Partition was only seven years. So, it all happened suddenly.
No one was sure about what would happen to people’s lives in the future. That is why many migrants in 1947 thought they would return as soon as peace prevailed again.
During the initial period even Jinnah did not seriously raise the demand. He adopted it only as bargaining counter, to gain additional favours for the Muslims.
The Second World War had delayed the negotiations with the British but the Quit India Movement compelled the British to negotiate with Indian leaders for transfer of power.
After the War too, Cabinet Mission had recommended a loose three-tier confederation. That was initially accepted by all the major parties but later developments led to the partition.
Q3. How did ordinary people view Partition? (or) Describe the harrowing experiences of ordinary people during the period of partition of India. Answer: For ordinary people, partition was full of challenges and brought sufferings. The division was not a territorial division for them. It was also not a party politics of Congress and the Muslim League for them. But for the ordinary people, partition was a challenge for them. It brought misery and troubles to them. It meant death of their loved one, loss of property and wealth. Partition also uprooted them from their paternal land. People were forced to live in refugee camps. They were also forced to start their life once again from a new platform. So for ordinary people, partition was not a pleasant experience, but it was painful and full of sufferings.
Q4. What were Mahatma Gandhi’s arguments against Partition? Answer:Mahatma Gandhi was in favour of unity among various communities of the country. He was a firm supporter of religious harmony. He never supported the idea of partition. He did not want the separation of the Muslims from the Hindus who had been living together for centuries. In his view partition was wrong. He was ready to sacrifice his life for an undivided India. But he was not ready to accept the partition. In his view, Islam stood for unity and brotherhood of mankind and not for separation. So he said that the demand of Pakistan by the Muslim League was un-Islamic and sinful.In his view those who favoured the partition were enemies of both Islam and India.He opined the Hindu and the Muslims belonged to the same land. They were living in India together for centuries. They shared the same land, same food . They drank the same water. They speak the same language and they live in peace and harmony: So he appealed to the Muslim League not to demand for a separate nation.
Q5. Why is Partition viewed as an extremely significant marker in South Asian history? Answer: Partition is viewed as an extremely significant marker in South Asian history due to the following reasons :
During Partition several hundred thousands were killed and innumerable women raped and abducted. About 15 million people were compelled to move across the frontiers which were not known officially until two days after formal independence. They lost everything. They were rendered homeless. Thus, they were stripped of their local or regional cultures.
It was like a civil war because there were well-organised forces on both sides and concerted attempts to wipe out entire populations of other community as enemies.
It has been called by the ordinary people as “maashall-la – martial law”, “mara mari” (killings), and “raula” or “hullar” (disturbance tumult, uproar). Sometimes it has been described as “holocaust” but it was not state-driven extermination.
The Partition has led to produce India-haters in Pakistan and Pakistan-haters in India. Though such people were there before Partition but they were strengthened because of 1947.
Memories of Partition still continue to shape the history of people on both sides of border. Communal groups use them to create feelings of suspicion and hatred.
The relations between India and Pakistan too have been influenced by the legacy of the Partition.
Q6. Why was British India partitioned? Answer:Several factors can be attributed for the partition of British India. Some of them are discussed below: Role of Communal Parties and Organisations: Several historians and scholars think that the main purpose of the foundation of the Muslim League was to serve the interests of the Muslims. In retaliation, the Hindu Mahasabha was founded. The Muslim League was demanding more and more political rights for the Muslims. In retaliation of this, some of the Hindus took steps and established the Hindu Mahasabha in the year 1915. The Hindu Mahasabha also demanded more political rights and representation of the Hindus in the different government organizations. Following in the footsteps, the Sikh League was founded. Akali Dal also put forward demand for their people. Directly or indirectly, these political parties helped separation. They created feeling of separation and isolation among different communities.
British Policy: In India, the British followed the policy of Divide and Rule. In India, before the arrival of the British, the Hindus and the Muslims lived happily. There was unity, mutual cooperation and brotherhood among them. But the British did not like this. They sowed the seeds of dissension and followed the policy of Divide and Rule. Most of the historians believe that this policy of Divide and Rule was the main reason of the partition. The British historians, journalists and writers propagated through their writings that Muslim invaders made the Hindus enslaved and they had been exploited for centuries. Role of British Government: The British Government also encouraged partition. The British Government encouraged the Muslim League to demand for a separate state. They tried to disrupt the movement of independence by playing the game of imperialism.
Role of Leaders: Role of leaders was also responsible for the partition. Under the leadership of Jinnah, the Muslim League moved a resolution at Lahore demanding a measure of autonomy for the Muslim majority area and after that a new nation called Pakistan. The great poet Mohammad Iqbal also spoke about the need for a Muslim state in north west India as early as in 1930.
Q7. How did women experience Partition? Answer:
The women had harrowing experiences of the Partition — (i) Women were raped, abducted, sold and forced to settle down to a new life with strangers in unknown circumstances.
Later on when women adjusted themselves in new conditions and developed new family bonds, they were traced and sent back to their earlier families. The governments were insensitive to the complexities of human relationships. They also did not consult the concerned women. Thus, the government undermined their right to take decisions regarding their own lives.
At some places, women were killed by their own men to preserve their ‘honour’. Some women might have been compelled to end their lives against their will.
Q8. How did the Congress come to change its view on Partition? Answer:Initially the Indian National Congress was not in favour of the partition. But in March, 1947, the Congress high command agreed to Punjab into two parts. One part would consist of the Muslim -majority areas and the other part would consist of the areas having Hindu-Sikh majority. To most of the Sikh leaders and Congress leaders, partition of Punjab was a necessary evil. The Sikhs feared that their denial to the partition of Punjab may lead them to be overpowered by the Muslims. They would be under control of the Muslims.Situation was the same in Bengal. The Bhadralok Bengali Hindus of Bengal wanted to retain political power with them. They were also apprehensive of the Muslims. In Bengal, the Hindus were in minority. So they favoured the partition. They thought that partition would help them to retain political dominance. These reasons forced the Congress to change their view on Partition.
Q9. Examine the strengths and limitations of oral history. How have oral-history techniques furthered our understanding of Partition? Answer:Oral history techniques help historians to write experiences of people during the time of partition. In fact, history of partition has been reconstructed with the help of oral narratives. It is not possible to extract such kind of information from government records. Government would not provide such information which paint them in bad colour. It will also not tell about the daily development of the events during the partition. Moreover, Government was involved in negotiation. Documents of government deal with policy matters and throw light on efforts of major political parties.
But the oral history tells the day to day account. It is told by the people who have actually gone through the trauma and pains of the partition.But the oral data is not free from limitations. Oral data lacks concrete details. It does not have the chronological order. Oral accounts are concerned with tangential issues and that small individual experiences are irrelevant to the unfolding of the larger canvas of history. In oral history people may not talk their personal aspects. They can hide even their fault or fault of their community as a whole. Many people may not remember all events. People tend to forget also. Accuracy of narration can also be questioned.
Q1. How did Mahatma Gandhi seek to identify with the common people? Answer: Mahatma Gandhi seeked to identify himself with the common people of India. For this action plan (a) He began to live in a very simple lifestyle. He wore simple clothes which a poor Indian would wear. (b) He spoke the language of local people. (c) Mahatma Gandhi opposed the caste system and attacked untouchability personally lived with the Harijan. (d) Mahatma Gandhi attached dignity to labour and physical work. He worked on Charkha and cleaned toilets. (e) He attacked the sentiment of the feeling of classifying people into low and high.
Q2. How was Mahatma Gandhi perceived by the peasants? Answer:Mahatma Gandhi was very popular among the peasants and his image was as mentioned below :
The peasants considered him as if he had been sent by the King to redress the grievances of the farmers, and that he had the power to overrule all local officials.
It was also claimed that Gandhiji’s power was superior to that of the English monarch, and that with his arrival the colonial rulers would go away from the district.
There were also rumours that the villagers, who had criticised him, have found their houses mysteriously falling apart or their crops failing.
He was called as, “Gandhi baba – Gandhi Maharaj” or “Mahatma”.
Peasants considered him as a saviour, who would rescue them from high taxes and oppressive officials. It was hoped that Gandhi would restore dignity and autonomy to their lives.
Gandhiji’s appeal among the peasants was enhanced by his ascetic lifestyle, and by his use of the dhoti and the charkha.
Q3. Why did the salt laws become an important issue of struggle? Answer: Poorest of poor Indian consume food that has salt as one of its prime ingredient. British government brought tax on salt and making salt indigenously was forbidden. It was to become a big burden on the poor people of India. Some important points regarding salt law are as follows.
Salt law was to lead to monopoly of salt production and distribution. It was to fuel prices, and added to this was the tax levied by the government.
People were denied access to natural salt and tons of the same were destroyed.
Salt law was an attack on the local industry in the villages too. Hence salt law was extremely unpopular and it became an important issue of the struggle.
Q4. Why are newspapers an important source for the study of national movement? Answer: Contemporary newspapers are an important source of the study of national movement. Following points lay bare their importance as source of history with reference to Indian Freedom Movement. (a) Many contemporary newspapers were published by those who were involved in the freedom struggle. For example, National Herald was issued by Motilal Nehru, further Mr Jinnah issued Dawn. These nespapers were mouthpieces and represented important voices of the movement. Hence, they made important source of information regarding the freedom movement.
(b) Newspapers do daily reporting, hence, their reporting is more detailed than perhaphs any other source can be. As they report on extremely recent events, the chances of misreporting is less. Reading different nespapers further makes our reading balanced and free from bias.
(c) Many newspapers were in local Indian languages, i.e. in vernacular languages and their circulation was limited. Hence, they published newspaper from local perspective which other sources of history may not have.
(d) They reflect the mood of the people too. These newspapers shaped what was published and the way events were reported. Accounts published in a London newspaper would be different from a report in an Indian nationalist paper.
Q5. Why was the charkha chosen as a symbol of nationalism? Answer: The charkha was chosen as a symbol of nationalism due to the following factors :
Gandhiji considered the charkha as a symbol of a human society that would not glorify machines and technology.
The spinning wheel or the charkha provided the poor with supplementary income and make them self-reliant.
It leads to concentration of wealth, not in the hands of few, but in the hands of all.
The charkha was considered a machinery and was used for the service of the poorest in their own cottages.
Under the above circumstances, Gandhiji spent a part of each day working on charkha and encouraged other nationalists to do likewise. In this way, he broke the boundaries that prevailed within the traditional caste system, between mental labour and manual labour.
Q6.How was non-cooperation a form of protest? Answer: Gandhiji believed that British empire in India could survive as long as the local people were cooperating with the foreign rule. Non-cooperating with the British government was to weaken it and also to protest against the same. Following points explain how it was a protest: 1. Non-coperation movement came along with the Khilaphate movement, The British has not seen Hindu Muslem unity of this level ever in history. The protest of the people was unified cutting across communities and at great scale.
2. People boycotted the pillars and symbols of British rule, courts, colleges and government offices. Lawyers stopped going to courts and students stayed away from colleges. At many places alternate arrangements were done to solve litigations out of court. Further many education institutions were established by the leaders of freedom struggle where students can study. One of them is Jamia Millia University in Delhi which exits today as one of the most reputed seats of higher education in India.
3. People boycotted tax collection also and they refused to pay taxes. Thus, non-cooperation was a kind of protest too.
Q7. Why were the dialogues at the Round Table Conference inconclusive? Answer:The British Government has had the policy to review the progress of self-rule in India and bring reforms after the gap of ten years. This began in 1910 with Morley Minto Reform and was followed in 1920 with Montague Chemsford Report. Ten years later British government invited Round Table Conference in London for the way forward. The First Round Table Conference took place in November, 1930. The Conference failed as the most important stake holder of Indian Freedom Movement, the Indian National Congress was absent in the conference. The leaders of the Congress were behind bars due to civil disobedience movement.
The Second Table Conference took pace in February 1931. One month earlier Mahatma Gandhi was released from the jail. Hence, he participated in the conference. Gandhi Irwin pact was signed and the British government agreed to withdraw salt law partly. But the agreement came under criticism as it did not talk about complete independence of India.
Third and the most important Round Table Conference took place in the later part of 1931. The new constitutional developments were not agreed upon. The main reason was that the other participants of the conference described Congress as representative of small group of Indians and not the entire population. The major voice of dissent were, the Moslem League that claimed itself the sole representative of the Moslems in India, Dr B.R. Ambedkar claimed himself the sole representative of the low castes in India and the native rulers also claimed they would deal with the British independently and Congress could not have any say in that.
To conclude divisive politics of Moslem League, Dr Ambedkar and the attitude of the princely states are the main reasons for the failure of the round table conferences.
Q8. In what way did Mahatma Gandhi transform the nature of the national movement? Answer:Gandhiji came to India back from South Africa in 1915. In 1917 he went to Champaran in Bihar to fight for the cause of farmers who were forced to grow indigo by the British government. The farmers movement proved successful as the British government accepted the demands of the farmers. Since that time to 1943 when he was assassinated, he occupied the central place in the politics of India. The fact is Mahatma Gandhi is the chief protagonist of the Indian Freedom Struggle. Mahatma Gandhi changed the nature of freedom movement and this can be elaborated by the following points: 1. When Gandhiji joined Indian politics, the freedom movement was limited to the middle class. Everybody who participated in the political movements was educated and product of the English education. Gandhiji made it all pervasive, now people from villages, poor people, labours, workers, and students all became part of the freedom struggle. However, there are people who find fault with the act of Gandhiji. They point out that Mahatma Gandhi used religious symbols to popularise the freedom movement that in long term gave fillip to communal politics. It is notable that the Age of Gan-lhi is also the age of the Rise of Moslem League in Indian politics. Eminent author Nirad C Choudhary has also criticised Mahatma Gandhi for making the freedom movement a mass movement by short cuts.
2. Mahatma Gandhi has to be credited with emancipation of women and their participation in the public life at a scale not known in Indian history. Women were very prominent in picketing activities against shops selling foreign goods. The freedom movement gave some prominent woman leaders viz. Sarojini Naidu, Rajkumari Amrit Kaur, and many more.
3. For Mahatma Gandhi freedom movement was also a platform for social reforms. He spoke in favour of place of dignity and respects for depressed classes. He made end to untouchability a fundamental objective of his political philosophy. Thus Mahatma Gandhi made freedom movement a mass movement and a movement much beyond politics.
Q9. What do private letters and autobiographies tell us about an individual ? How are these sources different from official accounts? Answer: Private letters and autobiographies are important source of individual’s life and views. Many of our freedom struggle leaders wrote autobiographies and letters and today they are our great record about them and history too. The autobiographies and letters tell us the following things about an individual. 1. Autobiographies and letters throw light on the interests of an individual. Let us take an example, Nehru wrote letters to his daughter Indira describing the events of world history, today it is known as the book, ” Glimpses of the World History”. These letters show that Nehru had great interest in history. These letters show also the views of the author. For example, Nehru talks highly of the socilaist government of USSR in his autobiography.
2. These autobiographies and letters are a good source of information of the social life of those days in India. Dr Rajendra Prasad has given vivid description of the village life that he saw as a child in his village.
3. Above all these autobiographies and letters are great source of history too. Nehru in his autobiography has explained in details about the obstinate approach of Moslem League towards solving the minority problem in India.
These sources were diffferent from the official accounts. This is manifested in the following points: 1. The official accounts are done by individuals but they work under the guidelines of the government. Thus, views that run against the government remain stifled. In addition, the author would not have the freedom of focused area. He would be required to write only on topics already defined. However, in autobiographies and letters one can choose anything of personal interest. Dr Rajendra Prasad gives a vivid description of his school and college days in his autobiography. This is not possible in any government account.
2. The autographic letters throw light on the personal life of individual leaders and show these events shaped the thought process of these leaders in future life. Mahatma Gandhi described how he was thrown out of the first class compartment of the train in South Africa because he was not a white man. He describes the struggle inside on how to protest and later how he took to non -violent means of protest.
Q10. Find out about the route of the Dandi March. On a map of Gujarat plot the line of the march and mark the major towns and villages that it passed along the route. Answer:Dandi March was started from Sabarmati Ashram. This Ashram is in Ahmedabad (Gujarat). The route followed from Ahmedabad to Vadodara and from there to Surat. We have used triangle A, B, and C to mark the Dandi expedition route.
Q1. To what extent are census data useful in reconstructing patterns of urbanisation in the colonial context? (or) “A careful study of census reveals some fascinating trends of urbanisation in 19th century.” Support the statement with facts. Answer: A careful study of the data collected through the census provides us a lot of information in understanding the trend of urbanisation. It can be examined as under: (a) The process of urbanisation was sluggish in India after 1800. (b) In the nineteenth century and in first two decades of the twentieth century the proportion of the urban population was very low and stagnant. (c) Which recorded between 1900 and 1940, A 13% increase in the urban population which recorded between whereas during the same period, these was a overall 10% increase in the population of the whole country. (d) The data, thus, collected helps us in the enumeration of people according to their age, sex, caste, religion, occupation, etc.
Q2. What do the terms “White” and “Black” Town signify? Answer: The White Town was the area where Europeans lived. These areas were separate. They had broad streets, bungalows set amidst large gardens, barracks, parade ground and church. They were safe heaven for the Europeans. For example in Madras Fort St. George was the nucleus of the White Town where most of the Europeans lived. Walls and bastions made this a distinct enclave.
The Black Town on the other hand, were meant for Indians – the Indian agents, middlemen, weavers, artisans and interpreters. In Madras, the Black Town was developed outside the Fort. A Black Town generally resembled traditional Indian town, with living quarters built around its own temple and bazaar. There were narrow lanes and distinct caste-specific neighbourhoods.
Q3. How did prominent Indian merchants establish themselves in the colonial city? Answer: The prominent Indian merchants and traders settled in colonial cities like Bombay, Calcutta and Madras. They served as agents or middlemen for the British and lived traditionally built courtyard houses in the Black Town. They centred over large tracts of land in these cities and heavily made investments for the future. They wanted to impress their British masters or colonial ruler or white people living in white towns by giving lavish parties during festivals seasons and built temples to establish their supremacy and prestige in society.
Q4. Examine how concerns of defence and health gave shape to Calcutta. Answer: Concerns of defence and health gave shape to Calcutta in the following ways :
1. Defence : In 1756, Sirajudaula had attacked Calcutta and sacked the small fort of British traders. Subsequently, when in 1757 Nawab was defeated in the Battle of Plassey, the British decided to build a new fort that could not be attacked easily. So, when the new Fort William was built, they left a vast open space known as the Maidan or garer-math. This was done from the defence point of view to ensure that there would be no obstructions to a straight line of fire from the Fort against an advancing army.
2. Health : Health too played an important role in giving shape to Calcutta. When Lord Wellesley became the Governor General, he found that the condition of the Indian part of the city was bad. There was overcrowding, the excessive vegetation, the dirty tanks, the smells and the poor drainage. The British worried that such conditions were the cause of most diseases. The tropical climate itself was seen as unhealthy. They thought that there should be open spaces in the city. Lord Wellesley felt the need for town planning and set up various committees for the purpose. Many bazaars, ghats, burial grounds, and tanneries were cleared or removed. From then on the notion of‘public health’ became an important factor in shaping the development of Calcutta.
Q5. What are the different colonial architectural styles which can be seen in Bombay city? Answer:In the past, buildings were at odds with the traditional Indian buildings. Gradually, Indians too got used to European architecture and made it their own. The British in turn adapted some Indian styles to suit their needs. One example is the bungalow which was used by government officers in Bombay. The colonial bungalow was set on extensive grounds which ensured privacy. The traditional pitched roof and surrounding veranda kept the bungalow cool in summer months. These bungalows can still be seen in the city. Other than that traditional styles of decoration and building exist. The lack of space in the city and crowding led to a type of building unique to Bombay, the chawl.
Q6. How were urban centres transformed during the eighteenth century? Answer:Urban centres were transformed during the eighteenth century in the following ways :
With the decline of Mughal power, Delhi and Agra lost their importance. With the rise of regional powers, importance of regional capitals : Lucknow, Hyderabad, Seringapatam, Poona, Nagpur, Baroda and Tanjore increased.
The changes in the networks of trade also affected the transformation of urban centres. The European companies had set up trading centres at Panaji (Portuguese), Masulipatnam (Dutch), Madras (British) and Pandicherry (French). As the trading activities increased, towns grew around these trading centres. By the end of the eighteenth century, the land-based empires in Asia were replaced by the powerful sea based European empires.
Commercial centres such as Surat, Masulipatnam and Dhaka declined because due to expansion of trade of the East India Company, colonial port cities Madras, Calcutta and Bombay — emerged as the new economic capitals. They also became centres of colonial administration and political power. These cities became the biggest cities in India in terms of population.
Some local officials associated with Mughal rule in India created new urban settlements such as the qasbah and ganj.
Q7. What were the new kinds of public places that emerged in the colonial city? What functions did they serve? Answer:The Indians found the new colonial cities as bewildering. They were surpassed the new transport facilities available here. The means of transport facilities which included horse-drawn carnages, tram11 and buses. Enabled the people to live at far away places from the city centre. Now they lived at some other places and served at some other places.
Emergence of new public places: The new colonial cities far away place witnessed new public places such as the theatres, cinema-halls, gardens, public parks, etc. Besides these were clubs and Garden Houses.
Functions: These newly created public places were very exciting. They were an important source of entertainment and helped increasing social interaction. The people were able to express their opinions on society and government. They could also question the practice of social customs.
Q8. What were the concerns that influenced town planning in the nineteenth century? Answer:The concerns that influenced town planning in the nineteenth century were as given below :
Security : The security of the Britishers was an important factor due to the memory of 1857. The vast open space, which is known as the Maidan or garer-math, around the Fort in Calcutta was left so that there would be no obstructions to a straight line of fire from the Fort against the enemy. The purpose of the Civil Lines was too the security of the Britishers.
Health : In Calcutta, the crowding, the dirty tanks and poor drainage and tropical climate were seen a unhealthy. This led to creating open spaces in the city to make it healthier. Many bazaars, ghats, burial grounds and tanneries were removed. Public health became an object of town planning. Bustis were removed.
To reflect the authority of the imperial power : With the growth of their empire, the object of town planning was to represent rational ordering, meticulous execution, and Western aesthetic ideals. For example, in Bombay neo-classical or the new classical style was used to express the glory of imperial India. The examples are Town Hall, Victoria Terminus and other buildings.
Separation from the Indians on the basis of race : Black Town and White Town came into existence on the basis of race i.e., Black Towns for the Indians and the White Town for the Europeans. Similarly, later on, the bungalows in the civil lines became a racial exclusive enclave in which the ruling classes could live self-sufficient lives without daily social contact with Indians.
Q9. To what extent were social relations transformed in the new cities? Answer:(i) There was a big contrast between extreme wealth and poverty in the new cities. New means of transport facilities such as horse-drawn carriages, trams, buses, etc. made travelling from home to work an interesting experience. (ii) Creation of public places like theatres public parks and cinema halls provided new forms of entertainment and social interaction. (iii) New social groups were formed people of all classes started to migrate to the cities. With an increased demand for lawyers and engineers the “middle class” increased. Debate and dicussion became popular and established social norms and practices were questioned. (iv) Cities also offered new opportunities for women. They chose new professions in the city as factory workers, teachers, film actresses, etc. for a long time so women remained objects of social censure.
Q10. On an outline map of India, trace the major rivers and hill ranges. Plot ten cities mentioned in the chapter, including Bombay, Calcutta and Madras, and prepare a brief note on why the importance of any two cities that you have marked (one colonial and one pre-colonial) changed in the nineteenth century. Answer:Rivers are Ravi, Satluj, Ganga, Yamuna, Beas, Kosi, Narmada, Godavari, Krishana, and Kaveri. Major Hill ranges are the Himalayas, Aravali, Vindhyachal, Satpura, Karakoram.
Q1. Why did the mutinous sepoys in many places turn to erstwhile rulers to provide leadership to the revolt? Answer: Following are the major reasons to explain why the rebellious soldiers turned to native rulers for leadership: 1. East India company defeated native rulers to grab power in India. Many believed that the native Indian rulers had the legal and legitimate authority to regain power in the respective kingdoms. Therefore, it was natural that they became the leaders of the rebels and regain the lost status of rulers.
2. The erstwhile rulers had substantial resources at their command. They had wealth and private armies too. The rebels waited to get the support of resources from them, and by declaring them the leaders it was natural outcome.
3. Most of the erstwhile Indian rulers were popular at the local level. Their subjects often sympathised with them as they believed that the latter were unlawfully thrown out of power and even suffered humiliation. Choosing these native rulers was echoing the sentiments of the people and winning more support for the cause.
Q2. Discuss the evidence that indicates planning and coordination on the part of the rebels. Answer:The evidence that indicates planning and coordination on the part of the rebels is as given below :
Lines of communication :
There was communication between the sepoy lines of various cantonments. For example, after the 7th Awadh Irregular Cavalry had refused to use new cartridges, they wrote to the 48th Native Infantry that “they had acted for the faith and awaited the 48th’s orders.”
Sepoys or their emissaries moved from one station to another.
Mutinies were organised is evident from the incident relating to protection given to captain Hearsey by his Indian subordinates during the mutiny. In this case, it was decided that the matter would be decided by a panchayat composed of native officers drawn from each regiment. It proves that the mutinies were well organised. Charles Ball has also noted that panchayats were a nightly occurrence in the Kanpur sepoy lines.
Q3. Discuss the extent to which religious beliefs shaped the events of 1857. Answer:People during the company rule felt that their religious sentiments are systemically hurt by the government. For them it was an attack on their religious freedom, and an insult. The religious causes for the Revolt are as follows:
Immediate cause: The soldiers were given cartridge greased with cow and pig fat. This angered Moslems and Hindus alike.
Reforms by Company: The Company introduced many religious and social reformers. Many Indians began to believe that it was an attempt on the part the government to deviate them from their own religion. Important of such reforms were prevention of sati system, widow remarriage, etc.
Activities of Christian Missionaries: During company rule involved in spread of education. But local people looked upon them with suspicion. Thus, the people plunged in rebellion against the foreign rule.
Q4. What were the measures taken to ensure unity among the rebels? Answer:The following measures were taken to ensure unity among the rebels :
The rebel proclamations in 1857 repeatedly appealed to all sections of the population, irrespective of their caste and creed. For example, the Azamgarh Proclamation of 25 August 1857 appealed to all “Hindoos and Mohammedans” to stake their lives and property for the well being of the public and take their share in the holy war against the British.
Proclamations made by the Muslim princes or in their names took care to address the sentiments of Hindus.
The rebellion was seen as a war in which both Hindus and Muslims had equally to lose or gain.
The ishtahars harked back to the pre-British Hindu-Muslim past and glorified the coexistence of different communities under the Mughal Empire.
The proclamation that was issued under the name of Bahadur Shah appealed to the people to join the fight under the standards of both Muhammad and Mahavir.
British made attempts to create divisions between Hindus and Muslims. For example, in Bareily in western Uttar Pradesh, in December 1857, the British spent? 50,000 to incite Hindu population against the Muslims but they failed.
Q5. What steps did the British take to quell the uprising ? Answer:In 1857 a sepoy mutiny broke out in East India that became a mass uprising in many parts of the country. The Company had faced rebellions in the past too, but not of this magnitude and extent. The British rulers realised that unless the rebellions is suppressed, their empire was destined to fizzle out. They took swift measures to put down the flame of the rebellion, some were of military nature while others were of political nature. The important measures taken by the British to suppress the rebellion are as follows: 1. Imposition of Marshal Law and large scale of execution: In north India where rebels were holding ground, Marshal Law was imposed. Apart from enforcing law, military officers also had the power to dispense justice and pronounce conviction and punishment. Thus, for all practical purposes, rebels and their sympathizers could be declared guilty without fair trial. The punishment was not just swift, cruel and partisan but in most cases execution. The execution was carried out in a manner that fear grips the masses. The people were blown up by canons, still others were hanged by trees. The objective was to terrorize the people and make them subservient to the might of the British empire.
2. Diplomacy: The British masters used diplomacy as tool to weaken and destroy the rebellions. They tried to win the support of native kingdoms who were not on the side of rebels, by promising them rewards and securing their kingdoms. The communities who were not involved in the mutiny, viz. Sikhs were recruited and sent to fight the rebels.
3. Use of technology: The British used technology to get an upper hand in the battle fields. Apart from having superior weapons, it was the superior communication system that routed the rebels. The company used telegram to instantly communicate with others, the rebels were totally clueless about such things. To conclude the British strategy and technique to defeat the rebels was multi¬pronged and superior to those employed by the rebels. It was natural that the rebels crumbled in course of time.
Q6. Why was the revolt particularly widespread in Awadh? What prompted the! peasants, taluqdaars and zamindars to join the revolt? Answer:(a) The revolt was widespread in Awadh due to the following reasons :
Awadh was annexed by the British on the plea that the region was being misgoverned. The British thought that the Nawab was not popular but on the contrary he was very popular. People considered it as “the life has gone out of the body”. The removal led to an emotional upheaval among the people of Awadh.
The annexation of Awadh led to unemployment among the musicians, dancers, poets, artisans, cooks, retainers, administrative officials and soon those who were attached with the Nawab and his household.
It also led to loss of court culture.
(b) The peasants, talnqdars and zamindars joined the revolt due to the following grievances :
Before the annexation, the taluqdars were very powerful but immediately after the annexation, they were disarmed and their forts destroyed. Not only under the first British revenue settlement, known as the Summary Settlement of 1856, it was assumed that they had no permanent stakes in land. Wherever possible they were removed. This led to discontentment among the taluqdars.
The British had hoped that by removing the taluqdars, the condition of the peasants would improve but this did not happen. Revenue flows for the state increased but the burden of demand on the peasants did not decline. So, the peasants were too not happy with the new situation.
Q7. What did the rebels want? To what extent did the vision of different social group differ? Answer: The rebels wanted to uproot the British rule. It was to be replaced by the rule of Indian, but what would be the nature of that governance is something the rebels were not sure of. They were definitely not fighting to establish a democratic government. The salient points of the vision of the rebels were as follows: 1. Hindu-Muslim Unity: The rebels were not clear about the idea of Hindu-Muslim Unity. But they were definitely cherished the ideals of Hindu-Muslim unity. The religious sentiments of both the parties were respected so much so whenever a new territory fell to rebels, cow slanghter was banned.
2. Preserving Indian Culture: Many believed that the company was pushing European culture and Christianity on the Indians. The rebels wanted to reverse this process. Some of the measures by the company to reform our society were also seen with the same vein.
The vision of the different social groups: Zamindars: Many of them did not like the provision of auction of their estate by the company to recover losses. They considered themselves as rulers who could not be dispossessed of their estate. Hence, many of them wanted to give governance that suited their interest. Merchants: They were a mixed lot. They liked the rule of company as it maintained peace and law across vast areas of India. However, they also looked upon the company rule as partisan that promoted British trade interest at the cost of that of Indian’s, for the end of Company rule could translate into a favourable environment. Artisans: Most artisans were struggling to survive as they suffered due to policies of Company that pumped manufactured goods of England.
Q8. What do visual representations tell us about the revolt of 1857? How do historians analyse these representations? Answer:(i) Pictorial images were produced by both British and Indians paintings, pencil drawings, posters, etc. They form an important record of the mutiny. British pictures in particular presented a variety of images that have provoked a range of different kinds of emotions and reactions.
(ii) Some of the British pictorial images commemorate the British heroes who served the English. They repressed the rebels hence represented as heroes for example, ‘Relief of Lucknow’ painted by Thomas Jones Barker, depicts the efforts of James Outrom, Henry Havelock and Colin Campbell in rescuing the besieged British garrison in Lucknow. This image was sketched in 1859.
(iii) Newspapers reported incidents of violence against women and children such kinds of news when broke out, they led to demands for revenge and retribution. The British government were asked to protect the women and children. Artists have tried to express these feelings through their visual representations of trauma and suffering.
(iv) Memories “In memoriam” painted by Joseph Noel Paton portrays helpless English women and children huddled in circle awaiting their fate at the hands of the rebels. Through it he ties to represent the rebels as violent.
(v) Portrait of heroes of rebellion the dead and injured potrait in the picture indicate the sufferings which occurred during the siege. While the triumphant figures of heroes in the middle ground emphasised the fact that British rule had been reestablished. The rebellion has been surprised.
(vi) Invincibility of British threatened by the rebellion, the British felt the need to demonstrate their invincibility. They frid to represent it through pictorial images for example, in one such image a female figure of justice with a sword in one hand a shield in the other is shown. Her posture is aggressive, her facial expression express her anger and a desire for revenge she is presented in a heroic image.
(vii) In certain sketches and paintings women are depicted as heroic. They are represented as defending themselves against the rebels. Women’s struggle to save her honour and life is shown to have a deeper religious connotation. It is a battle to save the honour of Christianity and a book lying on the floor is said to symbolize the Bible.
(viii) Source of deals with the report of a British officer from Oudh. The reports of the uprising of the people.
Q9. Examine any two sources presented in the chapter, choosing one visual and one text, and discuss how these represent the point of view of the victor and vanquished. Answer: Ordinary people join the mutiny of 1857. Lucknow was one of the main centres. The sepoys of Awadh were joined by peasants, zamindars, traders and talukdars. Source Sisten and the tahsildar: In the context of the communication of the message of revolt and mutiny, the experience of Francois Sisten, a native Christian police inspector in Sitapur, is telling. He had gone to Saharanpur to pay his respects to the magistrate. Sisten was dressed in Indian clothes and sitting cross-legged. A Muslim tahsildar from Bijnor entered the room; upon learning that Sisten was from Awadh, he enquired, “What news from Awadh? How does the work progress, brother?” Playing safe, Sisten replied, “If we have work in Awadh, your highness will know it.” The tahsildar said, “Depend upon it, we will succeed this time. The direction of the business is in able hands.” The tahsildar was later identified as the principal rebel leader of Bijnor. This source indicate that the effect of the rebellions had spread even among those officers who had earlier supported the British. The English men worried about their lives, property, owner of women and children. The geographical extent of the revolt was much greater. The magistrate used to get news and daily development day to day through their governmental representatives but they were suspicious as later on magistrate of Sitapur came to know that the Sisten who came to him was a great sympathiser of the rebellions.
Q1. Why was jotedar a powerful figure in many areas of rural Bengal ? Answer: Jotedars were rich peasants in Bengal. They owned big plots of land sometimes running into thousand of acres of land. They controlled local trade and commerce including the money lending business. They had great influence on the local village population. They were regarded more powerful than the Zamindars even. Following are the main reasons for the high status of Jotedars.
The Jotedars controlled trade and commerce including money lending business at the local level.
In order to weaken the Zamindars, Jotedars would mobilise ryots not to pay or delay payment towards land revenue.
The Jotedars opposed the moves of Zamindars to increase the Jama of a village.
The Jotedars lived in villages only. Hence they were in a better position to interact with and influence the peasants.
Jotedars were rich and owned big areas of land under cultivation. Many a time they would buy estates of Zamindar. That would be auctioned due to failure to pay up land revenue.
Q2. How did zamindars manage to retain control over their zamindaris? Answer:The zamindars manage to retain control over their zamindaris in the following manners :
1. Fictitious sale : It involved series of manoeuvres. For example, Raja of Burdwan, first transferred some of his zamindari to his mother because the company had decreed that property of women would not be taken over by the company. Secondly, his agents manipulated the auctions by buying the property, outbidding other purchasers. Subsequently, they refused to pay up the purchase money. As a result of it, the Estate was again resold at auction. But as the zamindar’s agents used to purchase it again and again, and did not pay the purchase amount, the auctions were repeated endlessly. Ultimately, the estate was sold at a lower price back to the zamindars, who never paid the full revenue demand. Such transactions took place on a large scale in Bengal including Burdwan.
2. Attack on outsiders : Whenever outsiders purchased an estate at an auction, they could not always take possession because their agents would be attacked by lathyals of the former zamindar.
3. Sometimes even the ryots resisted the outsiders due to their close relations with the zamindar. The ryots considered themselves to be the proja (subjects) of the zamindar.
Thus, the zamindars could not be displaced. Thereafter the rules of revenue payment were made flexible. As a result of that, the zamindar’s power over the villages were strengthened. It was only during the Great Depression of 1930s that their power collapsed and the jotedars consolidated their power in the countryside.
Q3. How did the Paharias respond to the coming of outsiders? Answer: Paharias live in the hills of Rajmahal. The British people began to interact with them and later Santhals began to settle down there. The response of the Paharias was as follows:
Paharias resisted the settlement of Santhals initially but had to accommodate them in course of time.
The Paharias shifted to deeper areas into the hills.
They were confined to more barren and rocky areas of the hills in course of time.
The paharias did shifting cultivation. Now shifting cultivation was becoming more and more difficult as proper and stable settlements.
As forest began to be cleared, the paharis could not depend on it for livelihood. Thus, the lifestyle and living of Paharias underwent change due to coming of outsiders.
Q4. Why did the Santhals rebel against British rule? Answer: By 1832 the Santhals had settled in Damin-i-Koh area. Their settlement expanded rapidly. Forests were cleared to accommodate them. The Company also benefitted as it got more and more land revenue. However, the Santhals too got dissatisfied. They rebelled against the British rule. Following are the main causes for their rebellion. 1. Santhals were not happy with the tax regime of the company. They thought that the land revenue rates were high and exploitative . 2. The Zamindars began to exercise greater control on the areas brought under cultivation by Santhals, apparently it was a part of the British Policy. But Santhals resented that. 3. Moneylenders in the rural areas were seen as villain and agent of Company rule by the Santhals. Moneylenders could auction the land of Santhals in case of defaulter. All this was not liked by the Santhals. The British took steps to placate the Santhals later on. A separate district of Santhal Pargana was carved out and law was enacted to protect the santhals.
Q5. What explains the anger of the Deccan ryots against the moneylenders? Answer:During the civil war in USA, Indian merchants hoped to capture the world market in raw cotton, but that did not happen. On the other hand, the following events took place after the civil war:
Cotton production in America revived and the Indian cotton exports to British steadily declined.
Export merchants and sahukars in Maharashtra refused to give long-term credit. They restricted the advances to peasants and demanded repayment of outstanding debts.
At the same time as the term of first revenue settlement was over, the demand for revenue was increased from 50 to 100 per cent.
As a result of above, the ryots were not in position to pay the inflated demand because the prices were also falling. Thus, they had no option except to take a further loan from the moneylender who also refused to loans. This enraged the ryots. The moneylenders became insensitive to their plight. They were violating the customary norms of the countryside. For example, general norm was that the interest charged could not be more than the principal. They were not charging fair interest. In one of the cases, investigated by the Deccan Riots Commission, the moneylender charged over ? 2000 as interest on a loan of ? 100. There were complaints of injustice of such extractions and the violation of custom. A new law – Limitation Law – was passed in 1859 where validity of loan bonds was fixed for three years but the
moneylenders manipulated new systems to exploit the ryots. Under these circumstances, the ryots’ anger against the moneylenders increased.
Q6. Why were so many Zamindaris auctioned after the Permanent settlement? Answer: Many Zamindaris were auctioned as the Zamindars failed to pay up the agreed land revenue on time. The reason for the same: 1. Many believed that the land revenue settlemnt was on the higher side. Moreover soon after the permanent settlement the foodgrain prices declined. The ryots could not pay up the land revenue and hence Zamindars also defaulted. 2. The revenue was to be deposited on time irrespective of harvesting cycle. This was another reason for default by the Zamindars. 3. The power of Zamindars was curbed by the Company. They were no longer law and order enforcing agency at local level. Their musclemen were also weakened. As a result of this Zamindars could not effectively collect taxes at times. 4. Many a time Jotedars and peasants deliberately delayed the land revenue payment. This resulted in default by Zamindars and the auction thereafter.
Q7. In what way was the livelihood of Paharias different from that of Santhals? Answer: Paharias were living in the foothills of Rajmahal. They lived a life that was different from Santhals. Most of the information on their lives is based on the report of Buchanan, the physician of the East India Company who wandered into the terrain of Rajmahal Hills.
The paharias were nomads. They lived a wandering life. They, however, sometimes did shifting cultivation.
Their another important source of livelihood of forest resources and animals.
They extracted mahua and used it. Colonialism and the countryside: Exploring official archives
Paharias used to look at outsiders with suspicion and even were hostile with them.
The Santhals were different from them on many counts.
The Santhals took to agriculture fast and soon got into settled life.
They had better relation with the outsiders including the East India Company.
Q8. How did the American Civil War affect the lives of ryots in India? Answer:The American Civil War affected the lives of ryots in India in the following ways :
In the beginning, as a result of civil war, the imports of cotton from America fell from over 2,000,000 bales in 1861 to 55,000 bales in 1862. The Britain looked towards to fill the gap. Thus, export merchants in Bombay were keen to avail this opportunity to earn maximum. The advances to urban sahukars, moneylenders and ultimately to the ryots were provided. This led to increase in cotton production. The ryots were given ? 100 as advance for every acre they planted with cotton. The cotton export to Britain increased but this did not bring prosperity for all. Some rich peasants gained but for the majority of cotton producers including the ryots, cotton expansion led to heavier debt.
The end of war again affected the ryots badly because with the revival of cotton production in America, the Indian exports declined. The sahukars were no longer interested in extending long-term loans. The demand for cotton had reduced, cotton prices slided downwards. It hit the ryots badly.
At the same time, under the new settlement for revenue, the demand was increased from 50 to 100 per cent. Under the conditions of falling prices and reduction in the growth of cotton in the absences of loans, it was not possible for the ryots to make payment of the inflated demand. Once again they had no option except to take loan from the moneylender but they refused to extend loans. This made the condition of ryots miserable and ultimately led to riots.
Q9. What are the problems of using the official sources in writing about the history of peasants. Answer:Official sources of the Company Raj are not regarded as reliable source of history when it came to the lot of Ryots. Following are the main problems associated with official source of history. 1. The official records reflect only the Company raj perspective. They did not look at events from different angles. For example when the Deccan Riot Commission was instituted, it was required to find out if the land revenue was just or not. Other issues of Ryots were not taken into account. 2. The British people looked down upon the local people, their culture and tradition as lowly. They ended up giving a lowly picture of peasants even if without intention of the same. 3. The record of the Company Raj was created by the officials in such a manner that it suits their masters. Thus, evidences were tempered with. For example the Deccan Ryot Commission concluded that Ryots were angered not by the high land revenue but by moneylenders. 4. Thus, official sources are to be read alongwith other sources and need to be weighed before we take them to our stride.
Q10. On an outline map of the subcontinent, mark out the areas described in this chapter. Find out whether there were other areas where the Permanent Settlement and the ryotwari system were prevalent and plot these on the map as well. Answer:In the chapter the following areas have been mentioned of the subcontinent. (a) Bengal. (Bangladesh along with certain area of Bihar, Orissa and hilly areas of Assam). (b) Bombay Presidency and (c) Madras Presidency, (d) The Britishers introduced Mahalwari system of land revenue in eastern part of Punjab (e) Surat (f) Rajmahal hills (occupied by Paharias and Santhals).
