Which of the following phrases defines the nature of the 'Hundi' generally referred to in the sources of the post-Harsha period? An advisory issued by the king to his subordinates A diary to be maintained for daily accounts A bill of exchange An order from the feudal lord to his subordinated

Which phrases defines the nature of the Hundi

Which of the following phrases defines the nature of the 'Hundi' generally referred to in the sources of the post-Harsha period?

Answer: C

Hundis refer to financial instruments evolved on the Indian sub-continent used in trade and credit transactions. They were used:

as remittance instruments (to transfer funds from one place to another),
as credit instruments (to borrow money),
for trade transactions (as bills of exchange). Technically, a Hundi is an unconditional order in writing made by a person directing another to pay a certain sum of money to a person named in the order.