The correct answer is Both 1 and 2.

• Murshid Quli Khan effected economies in administration and reorganized the finances of Bengal by transferring large parts of jagir lands into Khalisah lands by carrying out a fresh revenue settlement, and by introducing the system of revenue-farming. Hence, Statement 1 is correct
• He recruited revenue farmers and officials from local zamindars and merchant-bankers.
• He also granted agricultural loans (taccavi) to the poor cultivators to relieve their distress as well as to enable them to pay land revenue in time. Khalisah were not loans but type of land. Hence, Statement 2 is correct.

• Murshid Quli Khan was appointed as the Diwan of Bengal by Aurangzeb. Governor Murshid Quli Khan (1717-1727 A.D.) transferred the capital from Dacca to Murshidabad.
• He tried to save the interest of his province by preventing the collection of revenues by the English East India Company.
• His son in law Shujauddin Khan succeeded the govt. and annexed Suba of Bihar to become a part of Bengal.
  • Murshid Quli Khan and his successor nawabs administered Bengal, Bihar and Odisha as independent rulers though they continued to send revenue to the Mughal emperor regularly