Q. Consider the following statements regarding “token currency” of Muhammad Tughlaq:
1.It is first time introduced in the world.
2.The currency was made of bronze content.
Which of the statements given above is/are correct?
Answer: B
Notes:
Explanation: The important experiment of Muhammad was the introduction of token currency.
- This currency system had already been experimented in China and Iran.
- For India it was much ahead of its time, given that it was a time when coins were based on silver content.
- When Muhammad issued bronze coins, fake coins were minted which could not be prevented by the government.
- The new coins were devalued to such an extent that the government had to withdraw the bronze coins and replace them with silver coins, which fell heavily on the resources of the empire.
Source: Tamil Nadu NCERT
