SSC Economics Sample Paper NCERT Sample Paper-4

  • question_answer
    Which among the following correctly defines Hundi?

    A)  They are slips on paper presented to the customer while purchasing goods

    B)  They are accounts of unorganized sector in India

    C)  They are key instruments of credit in the unorganized money market in India

    D)  They are deposit schemes of NBFCs

    Correct Answer: C

    Solution :

    [c] A hundi is a financial instrument that developed in Medieval India for use in trade and credit transactions. Hundis are used as a form of remittance instrument to transfer money from place to place, as a form of credit instrument or IOU to borrow money and as a bill of exchange in trade transactions. The Reserve Bank of India describes the Hundi as "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.

You need to login to perform this action.
You will be redirected in 3 sec spinner