2026 · Modern HistoryPrevious Year Question
Q2.
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 ?
A. Aiding the flow of remittances from India and maintaining India's creditworthiness
B. Providing support to Indian importers
C. Encouraging export of cotton produce from India
D. Preventing depreciation of the Rupee in terms of gold
Answer

A

Explanation

The British adopted the fixed rupee-sterling rate associated with the Hilton-Young Commission to support sterling obligations, remittances and India's creditworthiness within the imperial monetary system. It was not primarily an export-promotion measure.