Authentic Past Paper Standard Evaluation
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. Choose the correct answer from the codes given below:
Solution & Analysis
Answer: A
Concept
Muhammad Bin Tughluq's token currency experiment (1329-30) was an attempt to manage a silver shortage by using brass and copper as legal tender. Its failure is a classic case study in pre-modern monetary policy.Explanation
Contemporary historian Barani famously noted that 'the house of every Hindu became a mint'. The state failed to create complex designs or a monopoly on the minting process, allowing for mass counterfeiting.Logical Breakup
Logic 1: Assertion (A) is true. The scheme collapsed by 1333, and the Sultan had to pay back gold/silver coins in exchange for the useless copper tokens.
Logic 2: Reason (R) is true and explains (A). Because the Sultanate lacked the technology to prevent forgery, and the Sultan didn't enforce a strict centralized minting monopoly, the market was flooded with fake coins, causing hyperinflation.