arrow
arrow
arrow
Read the given passage and answer the questions that follow. In 1600, the East India Company acquired a charter from the ruler of England, Queen El

Reading Comprehension

Read the given passage and answer the questions that follow.
In 1600, the East India Company acquired a charter from the ruler of England, Queen Elizabeth I, granting it the sole right to trade with the East. This meant that no other trading group in England could compete with the East India Company. With this charter, the Company could venture across the oceans, looking for new lands from which it could buy goods at a cheap price and carry them back to Europe to sell at higher prices.
The Company did not have to fear competition from other English trading companies. Mercantile trading companies in those days made profit primarily by excluding competition, so that they could buy cheap and sell dear. The royal charter, however, could not prevent other European powers from entering the Eastern markets. By the time the first English ships sailed down the west coast of Africa, round the Cape of Good Hope, and crossed the Indian Ocean, the Portuguese had already established their presence on the western coast of India, and had their base in Goa. In fact, it was Vasco da Gama, a Portuguese explorer, who had discovered this sea route to India in 1498. By the early seventeenth century, the Dutch too were exploring the possibilities of trade in the Indian Ocean. Soon the French traders arrived on the scene.
The problem was that all the companies were interested in buying the same things. The fine qualities of cotton and silk produced in India had a big market in Europe. Pepper, cloves, cardamom, and cinnamon too were in great demand. Competition amongst the European companies inevitably pushed up the prices at which these goods could be purchased, and this reduced the profits that could be earned. The only way the trading companies could flourish was by eliminating rival competitors. The urge to secure markets, therefore, led to fierce battles between the trading companies.

1) Question

What did East India Company do in India to exclude competition with other European companies?

A.

Fought fierce battles with them.

B.

Bought goods at higher prices than them.

C.

A is true and B is false.

D.

Both A and B are true.

Correct option is C

The correct answer is option (c).
• The passage clearly states that "the only way the trading companies could flourish was by eliminating rival competitors," and that "the urge to secure markets, therefore, led to fierce battles between the trading companies." This confirms that the East India Company fought fierce battles with rivals to exclude competition.
• However, the passage does not state that the East India Company bought goods at higher prices than others—in fact, competition pushed prices up and reduced profits, which was not a strategy but a consequence.
Other options are incorrect because:
(A) is true, but (B) is false.
(D) suggests both statements are true, which they are not.
(A) is included in (C), which is more accurate overall.

2) Question

Which Europeans came first to India to trade?

A.

The English

B.

The Dutch

C.

The Portuguese

D.

The French

Correct option is C

The correct answer is option (c).
• The passage says that "the Portuguese had already established their presence in the western coast of India, and had their base in Goa" and that Vasco da Gama, a Portuguese explorer, discovered the sea route to India in 1498, which predates the arrival of all other groups.
Other options are incorrect because:
(A) The English came in 1600 with a charter.
(B) The Dutch came later in the early 17th century.
(D) The French came after both Portuguese and Dutch.

3) Question

This passage is mainly about:

A.

the trading mechanism of the foreign companies

B.

the elimination of rivals by different companies

C.

the discovery of India by Vasco da Gama

D.

the coming of East India Company to India

Correct option is D

The correct answer is option (d).
• The passage begins by explaining how the East India Company got the charter to trade with the East, and the entire narrative centers on how this impacted trade, competition, and its operations in India.
Other options are incorrect because:
(A) is too vague and broad.
(B) is mentioned but not the main focus.
(C) is a part of the background, not the central idea.

4) Question

The charter of ‘the sole right to trade with the East’ meant for the East India Company that:

A.

among the English companies, only East India Company could trade in the East

B.

the East India Company could trade in certain specified goods only in the East

C.

other English companies could trade in the East along with the East India Company

D.

no other European company except for the East India Company could trade in the East

Correct option is A

The correct answer is option (a).
• The passage says, “This meant that no other trading group in England could compete with the East India Company.” This confirms that among English companies, only the East India Company had the right to trade in the East.
Other options are incorrect because:
(B) mentions specified goods – not supported.
(C) contradicts the exclusivity mentioned in the passage.
(D) is incorrect because it says “no other European company,” but the passage mentions Portuguese, Dutch, and French were present in India.

5) Question

. How did Mercantile companies make profit in the 17th century?

A.

They discovered new countries to trade with.

B.

They traded with the East.

C.

They eliminated competition to buy cheap goods and sell them at higher prices.

D.

They fought wars with other companies.

Correct option is C

The correct answer is option (c).
• The passage states, “Mercantile trading companies in those days made profit primarily by excluding competition, so that they could buy cheap and sell dear.” This clearly supports option (C).
Other options are incorrect because:
(A) is partially true but not the key method of making profits.
(B) is general and does not explain the mechanism of profit.
(D) is a consequence of competition but not the main method of profit generation.

Free Tests

Free
Must Attempt

SSC GD PYP (Held on 4 Feb 2025 S1)

languageIcon English
  • pdpQsnIcon80 Questions
  • pdpsheetsIcon160 Marks
  • timerIcon60 Mins
languageIcon English
Free
Must Attempt

Hindi Section Test 1

languageIcon English
  • pdpQsnIcon20 Questions
  • pdpsheetsIcon40 Marks
  • timerIcon12 Mins
languageIcon English
Free
Must Attempt

SSC GD Constable Full Mock Test 1

languageIcon English
  • pdpQsnIcon80 Questions
  • pdpsheetsIcon160 Marks
  • timerIcon60 Mins
languageIcon English

Similar Questions

test-prime-package

Access ‘SSC CPO’ Mock Tests with

  • 60000+ Mocks and Previous Year Papers
  • Unlimited Re-Attempts
  • Personalised Report Card
  • 500% Refund on Final Selection
  • Largest Community
students-icon
354k+ students have already unlocked exclusive benefits with Test Prime!
Our Plans
Monthsup-arrow