History · Administration and Economy
UGC NET January 2017 History
Which of the following statements is not correct?
ASarrafs (money changers) specialized in issuing hundis to enable remittances to be made.
BThe hundi was a negotiable document, usually transferred at a small discount.
CA single rate of 'exchange' was fixed for bills drawn at one place upon another, irrespective of remittance or credit. ✓ Correct
DThe hundi itself specified whether it was to be payable on sight, or payable at the end of a particular period after its presentation to the drawee.
Correct answer: (C) A single rate of 'exchange' was fixed for bills drawn at one place upon another, irrespective of remittance or credit. — The statement about a single fixed rate of exchange is not correct, so that is the answer.
Explanation
★The statement about a single fixed rate of exchange is not correct, so that is the answer.
★There was no single rate of exchange fixed for all bills.
★The rate varied with the place, the distance and the credit involved.
★So this statement is wrong.
★The other statements about hundis are correct.
★Sarrafs issued hundis, and they were negotiable and could be payable on sight or after a period.
Want more like this? Create a free account to practise a full test, track your progress, and get spaced-repetition review.
Shared by Mcqkart · via Mcqkart.in