Q25. Which of the following phrases defines the nature of the ‘Hundi’ generally referred to in the sources of the post-Harsha period?
(a) An advisory issued by the king to his subordinates (b) A diary to be maintained for daily accounts (c) A bill of exchange (d) An order from the feudal lord to his subordinates
Answer: C
The movement of goods during the Medieval period was facilitated by the growth of a financial system that permitted easy transfer of money from one part of the country to another. This was done using Hundis, which were instruments of credit or a bill of exchange. The Hundis was a letter of credit payable after a period at a discount.
