Q. Consider the following statements:
1.Hundi is a paper document promising payment of money after a fixed period at a discount and certain place.
2.The sarrafs were specialized in dealing with hundis.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Explanation: The movement of goods was also facilitated by the growth of a financial system which permitted easy transmission of money from one part of the country to another.

  • This was done through the use of hundis, a paper document promising payment of money after a fixed period of time at a discount and certain place.
  • The hundis often included insurance which was charged at different rates on the basis of value of the goods, destination, means of transport (land, river, or sea), etc.
  • The sarrafs (shroffs) who specialized in changing money, also specialized in dealing with hundis.

Source: Tamil Nadu NCERT

Blog
Academy
Community