Current Affairs

GK MCQs Section
Q. Consider the following statements:
  1. The American Civil War (1861-1865) led to a boost in the demand for Indian cotton.
  2. This surge in demand ultimately contributed to the failure of the Bank of Bombay in 1866.
Which of the above statements is/are correct?
Answer: Both 1 & 2
Notes: The American Civil War disrupted US cotton supply to Britain, leading to increased demand for Indian cotton and a price surge. Indian producers took large loans to expand production. After the war, cotton prices collapsed, leading to widespread loan defaults and contributing to the failure of the Bank of Bombay in 1866.
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📌 Question Number: 3 in 23. Economic and Social Developments Under British Rule in the above course in App.