Consider the following statements about the initial development of railways in India by the British :<br>1. Private financial investors for railways would get land free from the British Government in India.<br>2. The investors would get a return of 5 percent on their capital from the government if they ran at a loss or secured inadequate profit.<br>3. The railways would be jointly managed with the government.<br>How many of the above statements is/are <strong>correct</strong>?

  1. A. 1
  2. B. 2 ✓
  3. C. 3
  4. D. None

Correct Answer: B. 2

Explanation

Under the old guarantee system, British investors received free land and a guaranteed 5% return. However, statement 3 is incorrect because the railways were initially managed entirely by private companies, not jointly.

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