Explanation:
The statement is true. The Mughal emperor appointed the East India Company as the Diwan of the provinces of Bengal in the year 1700. This decision had significant implications for both the Mughal Empire and the East India Company.

Background:
During the early 18th century, the Mughal Empire was facing a decline in its power and authority. The empire was struggling to maintain control over its vast territories, and its financial administration was in disarray. At the same time, the East India Company, a British trading company, had established a presence in India and was gradually expanding its influence.

Appointment as Diwan:
In 1700, the Mughal emperor Aurangzeb appointed the East India Company as the Diwan, or the financial administrator, of the provinces of Bengal. This appointment gave the company control over the collection of revenue and the administration of the region's finances.

Implications:
1. Revenue Collection: As the Diwan, the East India Company had the authority to collect revenue from the Bengal provinces. This allowed the company to generate significant profits and establish a strong financial base.

2. Political Influence: The appointment as Diwan also gave the East India Company political influence in the region. The company was able to exert its authority and make decisions that furthered its own interests.

3. Economic Exploitation: The company used its position as Diwan to exploit the resources of Bengal. It imposed heavy taxes on the local population, leading to widespread poverty and economic hardship.

4. Consolidation of Power: The appointment as Diwan marked a significant step in the East India Company's efforts to consolidate its power in India. It allowed the company to establish a firm foothold in Bengal and lay the foundation for its future expansion.

5. Weakening of Mughal Empire: The appointment of a foreign company as the Diwan of Bengal signaled the declining authority of the Mughal Empire. It showed that the empire was unable to effectively govern its territories and was increasingly reliant on external powers.

In conclusion, the Mughal emperor did appoint the East India Company as the Diwan of the provinces of Bengal in the year 1700. This decision had far-reaching implications for both the Mughal Empire and the East India Company, ultimately leading to the company's increasing control and the weakening of Mughal authority.

False