UPSC Prelims 2020 Question:

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

Explanation:

• Hundis refer to bills of exchange evolved in the Indian subcontinent. It was 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.
  
  

Therefore, option (3) is the correct answer.

Subject: History | Miscellaneous(hist)