Question

The British Parliament passed the Regulating Act in 1773 to
1. regulate the affairs of the East India Company
2. study the condition of Indians
3. know the happenings in Bengal
4. none of these

Answer 1

Hint:
The Regulating Act was passed due to the mismanagement by the British East India government that brought a situation of insolvency.
This act permitted the company to retain its territorial custody in India but looked up to regulate the activities and functioning of the company.
The act provided for the appointment of Governor-General in Council.

Complete answer:
What is the Regulating Act of 1773?
The British Parliament passed the Regulating Act in June 1773 to control the territories of the East India Company majorly in Bengal. This act was passed due to the mismanagement by the British East India government that brought a situation of insolvency and the government had to intervene with the affairs of the Company.
Provisions of the Regulating Act
This act permitted the company to retain its territorial custody in India but looked up to regulate the activities and functioning of the company. It did not take control completely, hence called ‘regulating’.
The act provided for the appointment of a Governor-General with four Councillors in the Presidency of Fort William (Calcutta), together known as the Governor-General in Council.
Warren Hastings was assigned as the Governor-General of the Presidency of Fort William.
The Governors in Councils at Madras and Bombay were brought under Bengal’s control, especially in matters of foreign policy. Now, they could not attack against Indian states without Bengal’s approval.
The Directors of the company were elected for a period of five years with a provision that one-fourth of them were to retire every year. Also, they could not be re-elected.

Option (1) regulate the affairs of the East India Company: The Regulating Act of 1773 was passed to control and regulate the territories under the East India Company.
Option (2) study the condition of Indians: This option is incorrect, as none of the act was ever passed to study the condition of Indians.
Option (3) know the happenings in Bengal. This option is also incorrect. For this purpose, there was a Governor (before 1773) in Bengal. Under the Regulating Act of 1773, the office of Governor-General was created and from then onwards there was a Governor-General also in Bengal for this purpose.
Option (4) none of this: This option is not correct either, as among the given three options one is correct.

Therefore the answer is 1. regulate the affairs of the East India Company

Note:
Although the Regulating Act established the control of the British Government over the Company’s Indian affairs it had certain shortcomings.
The Governor-General lost control over the Council and couldn’t function without the majority opinion of the council.
Also, it did not address the concerns of the Indian population who were paying revenue to the company.