Authentic Past Paper Standard Evaluation
For the first time the token currency was introduced in India by:
Solution & Analysis
Answer: D
Concept
In a revolutionary monetary move, MBT attempted to replace intrinsic-value coins (gold/silver) with representative-value coins (brass/copper) to boost the circulation of money.Explanation
In 1330 CE, MBT issued copper tokens that were decreed to have the same exchange value as silver Tankas. This was the first such experiment in the Indian subcontinent.Logical Breakup
Logic 1: The Sultan sought to conserve gold/silver for high-level trade while using common metals for internal currency.
Logic 2: The project was a precursor to modern fiduciary currency, but it collapsed because of the state's inability to prevent private minting of counterfeit tokens.