What happened when Tughluq withdrew the token currency?

He offered to exchange the copper tokens for real gold and silver coins, which drained the state treasury and caused a massive financial crisis.

Why Tughluq's Token Currency Failed | UPSC History (2006 PYQ)

ID: ART_MIS_2006_50 Ref: Our Pasts - II

Consider the following statements: Assertion (A): The scheme of the token currency of Muhammad Tughluq proved unsuccessful. Reason (R): Muhammad Tughluq did not have the proper control over currency issue.

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Correct Option: A

Muhammad Bin Tughluq's token currency failed because he lacked control over coin production. This allowed widespread forgery, which devalued the currency and disrupted trade.

Consider the following statements: **Assertion (A):** The scheme of the token currency of Muhammad Tughluq proved unsuccessful. **Reason (R):** Muhammad Tughluq did not have the proper control over currency issue.

Consider the following statements: Assertion (A): The scheme of the token currency of Muhammad Tughluq proved unsuccessful. Reason (R): Muhammad Tughluq did not have the proper control over currency issue.