Question : What was one effect of the East India Company's revenue policies on the rural economy?
Option 1: Diversification of crops
Option 2: Stabilization of land prices
Option 3: Decrease in agricultural loans
Option 4: Consolidation of landholdings
Correct Answer: Consolidation of landholdings
Solution : One effect of the East India Company's revenue policies on the rural economy was the consolidation of landholdings, as smaller farmers were often unable to meet the revenue demands and had to sell their land to larger landowners.