With regard to the Mughal finance system which of the following statements are correct (A) There was a well-developed system of finance and credit in Mughal India (B) The use of hundis or bills of exchange was widespread (C) There was no insurance system hence risks of loss in transit were very high (D) Transport across land was itself costlier, it was more vulnerable to the exactions of chiefs and rebels Choose the most appropriate answer from the options given below:?

Option 1 : (A), (B) and (D) only

With regard to the Mughal finance system, only the statements (A), (B) and (D) are correct.

• During the Mughal period in India, the system of finance and credit was well-developed .
• The most highly developed money and credit market in Mughal India was at Surat.
• The cashless payments in Mughal India through bills of exchange or use of hundis was widespread.
• A hundi can be defined as a financial instrument developed in medieval India for the use of trade and credit transactions.
• Sarafs were the core group around which money and credit markets were organised.
• There was a insurance system in place and hence risks of loss in transit were very low.

• However, the transportation across land was costlier and it was more vulnerable to the exactions of chiefs and rebels.

Hence, we can conclude that the following statements are correct regarding the Mughal finance system:

(A) There was a well-developed system of finance and credit in Mughal India.

(B) The use of hundis or bills of exchange was widespread.

(D) Transport across land was itself costlier, it was more vulnerable to the exactions of chiefs and rebels.