In sources dating to the period after Harsha's reign, the term 'Hundi' referred to which one of the following?

Question

Accepted Answer

C. A bill of exchange, used as an instrument of credit and remittance in trade. In the post-Harsha period, 'Hundi' referred to a bill of exchange, an instrument of credit and remittance that let merchants transfer money or settle payments across distances without physically moving coin, a sign of India's developing commercial and credit institutions in this era. It was not a border tax, a religious land grant, or an artisan guild, each of which is a distinct historical institution with its own separate terminology, ruling out the other options. Hence option C is correct.

Answer

A. A tax levied on merchants transporting goods across a kingdom's borders

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B. A land grant made to Brahmanas for the performance of religious rites

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C. A bill of exchange, used as an instrument of credit and remittance in trade

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D. A guild of artisans organised around a particular craft