Consider the following statements regarding the role of mercantile guilds and traders during the Rajput period:
1. The fragmentation of political authority severely destroyed the influence of internal trade guilds (Shrenis).
2. Many merchant families (like Mahajans) were assimilated into the state bureaucracy, often holding high administrative offices like 'Mahamatya'.
Which of the statements given above is/are correct?

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Accepted Answer

Statement 1 is incorrect because while long-distance luxury trade declined, localized trade guilds and local markets (mandapikas) survived and adapted. Statement 2 is correct; due to the scarcity of cash and complex alliances, wealthy merchant families became deeply involved in politics, serving as ministers, financiers, and advisors to Rajput kings.

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