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History2020
Which of the following phrases defines the nature of the ‘Hundi’ generally referred to in the sources of the post- Harsha period?

Explanation

The term 'Hundi' during the post-Harsha period refers to a financial instrument akin to a bill of exchange, used for facilitating trade and commerce in ancient India. It functioned as a negotiable instrument, allowing merchants to transfer money or credit across different regions without the physical transfer of currency, thus promoting trade flexibility and trust. This understanding aligns with UPSC focus areas, highlighting the evolution of financial practices in historical economic systems.

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