Lotus
What geographical feature helped India become a significant center for trade?
A) The Himalayas
B) The Sahara Desert
C) The Amazon River
D) The Rocky Mountains
Answer: A) The Himalayas
Which of the following was NOT a major export of ancient India?
A) Spices
B) Cotton
C) Electronics
D) Precious stones
Answer: C) Electronics
During ancient times, India had strong trade relations with which civilization?
A) The Greeks
B) The Egyptians
C) Mesopotamia
D) The Aztecs
Answer: C) Mesopotamia
What role did the Indian Ocean play in India’s trade?
A) It isolated India from other countries
B) It facilitated trade with Africa and Southeast Asia
C) It was primarily used for fishing
D) It was not significant to trade
Answer: B) It facilitated trade with Africa and Southeast Asia
Which item was especially sought after in Europe from India?
A) Potatoes
B) Black pepper
C) Rice
D) Coffee
Answer: B) Black pepper
What was a significant advancement that contributed to India's agricultural productivity?
A) Green Revolution
B) Advanced irrigation systems
C) Industrial machinery
D) Modern fertilizers
Answer: B) Advanced irrigation systems
Which community was known for its strong trading networks in India?
A) The Brahmins
B) The Banias
C) The Kshatriyas
D) The Shudras
Answer: B) The Banias
What was the purpose of "hundis" in ancient India?
A) To promote agricultural practices
B) To serve as a type of currency
C) To act as a form of credit and finance
D) To regulate trade routes
Answer: C) To act as a form of credit and finance
How did Indian rulers contribute to trade during their reigns?
A) By isolating the economy
B) By providing security and infrastructure
C) By prohibiting foreign merchants
D) By limiting exports
Answer: B) By providing security and infrastructure
What technological advancement aided Indian merchants in maritime trade?
A) Steam engines
B) Large, durable ships
C) Airplanes
D) Submarines
Answer: B) Large, durable ships
What ancient text mentions the concept of credit and financial transactions in India?
A) Rigveda
B) Arthashastra
C) Ramayana
D) Mahabharata
Answer: B) Arthashastra
A) Large-scale merchant bankers
B) Traditional moneylenders
C) International financiers
D) Temple treasurers
Answer: B) Traditional moneylenders
What is a hundi?
A) A type of agricultural loan
B) A bill of exchange or promissory note
C) A form of currency
D) A financial cooperative
Answer: B) A bill of exchange or promissory note
How did temples contribute to the indigenous banking system?
A) By regulating trade practices
B) By acting as custodians of wealth and lenders
C) By providing large loans at high interest rates
D) By facilitating international trade
Answer: B) By acting as custodians of wealth and lenders
Which community is primarily associated with providing credit across Southeast Asia?
A) Sahukars
B) Shroffs
C) Chettiars
D) Guilds
Answer: C) Chettiars
What was the role of merchant corporations or trade guilds in the indigenous banking system?
A) To provide loans with high interest rates
B) To regulate trade practices and provide credit
C) To serve as the only source of currency
D) To facilitate governmental taxation
Answer: B) To regulate trade practices and provide credit
What impact did colonialism have on indigenous banking systems in India?
A) It strengthened indigenous banks
B) It led to the decline of indigenous banking systems
C) It had no significant effect
D) It eliminated all informal credit systems
Answer: B) It led to the decline of indigenous banking systems
What type of hundi is payable on demand?
A) Muddati Hundi
B) Darshani Hundi
C) Sahukar Hundi
D) Chettiar Hundi
Answer: B) Darshani Hundi
What were Nidhis in the context of the indigenous banking system?
A) Religious institutions
B) Cooperative credit societies
C) Types of hundis
D) Merchant corporations
Answer: B) Cooperative credit societies
Which modern financial practices echo the principles of indigenous banking?
A) Chit funds and self-help groups
B) Government loans
C) Corporate banking
D) Stock markets
Answer: A) Chit funds and self-help groups
Which of the following geographic features significantly contributed to India's role as a central hub for global trade?
Answer: B. Strategic location between East Asia, the Middle East, and Europe
What was one major advantage of India's indigenous banking system?
Answer: B. Use of the hundi for secure, long-distance trade transactions
Which community was particularly known for their role in international finance and trade across Southeast Asia during medieval India?
Answer: B. Chettiars
How did Indian rulers like the Mughals support the growth of trade in India?
A. By imposing heavy taxes on foreign merchants
B. By providing secure trade routes and market infrastructure
C. By restricting trade to Indian merchants only
D. By closing ports to European traders
Which of the following was a key export from India that was highly valued in European markets?