Which of the following phrases defines the nature of the 'Hundi' generally referred to in the sources of the post-Harsha period ?
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Answer: C. A hundi was a bill of exchange: a written order used by merchants to transfer money from one place to another without carrying cash. Sources from the early medieval period mention it in trade.
Watch for: The unfamiliar word makes students guess administrative meanings.
Why the other options are wrong
- A. Wrong because a hundi was a commercial paper, not a royal advisory.
- B. Wrong because it was a money-transfer instrument, not an account book.
- D. Wrong because it was used by merchants, not as a feudal order.
Source to check: NCERT Class 12 Themes in Indian History Part II, Chapter 8 (Peasants, Zamindars and the State) and Chapter 5; Satish Chandra, Medieval India
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.