Q. The artificially fixed rupee-sterling exchange rate prescribed by the Hilton-Young Commission (1926) was adopted by the British Government for which one of the following reasons?
Exp) option a is the correct answer.
The artificially fixed rupee-sterling exchange rate at 1s 6d was prescribed by the Hilton-Young Commission and adopted by the British government “to aid the flow of remittances from India and to maintain India’s credit-worthiness.” Under colonial rule, Britain regularly transferred large amounts of money from India in the form of administrative expenses, pensions, debt payments, and profits. A stable exchange rate ensured smooth remittances to Britain and protected India’s reputation in international financial markets.
Source:) A brief history of modern India by Ishita Banerjee–chapter-Difficulties and Initiatives-page 317
https://sde.uoc.ac.in/sites/default/files/sde_videos/ECONOMIC%20HISTORY%20OF%20MODERN%20INDIA.pdf
https://www.financialexpress.com/opinion/century-old-report-that-paved-way-for-rbi/4194597/
