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

1. A. An advisory issued by the king to his subordinates
2. B. A diary to be maintained for daily accounts
3. C. A bill of exchange
4. D. An order from the feudal lord to his subordinates

Answer: C

Explanation

In India, instruments of credit have been in use since time immemorial and are popularly known as Hundies. The movement of goods during Medieval period was facilitated by the growth of a financial system which permitted easy transfer of money from one part of the country to another. This was done through the use of Hundis. The Hundis was a letter of credit payable after a period of time at a discount.