UPSC CSE Prelims 2006

Economic Reforms of the Tughlaqs

Authentic Past Paper Standard Evaluation

Consider the following statements: **Assertion (A):** Muhammad-Bin-Tughluq issued a new gold coin which was called Dinar by Ibn Battuta. **Reason (R):** Muhammad-Bin-Tughluq wanted to issue token currency in gold coins to promote trade with West Asian and North African countries. Code:

Solution & Analysis

Answer: C

Concept Muhammad-bin-Tughlaq is known for his innovative but often failed economic and administrative experiments. His coinage reforms were ambitious attempts to manage imperial wealth.

Explanation Ibn Battuta records the use of high-quality gold coins (Dinar) during MBT’s reign. However, the 'Token Currency' was issued in brass/copper, not gold, as a response to global silver shortages.

Logical Breakup
Logic 1: Assertion (A) is true. MBT’s gold coins were of excellent quality and weights, noted specifically by foreign travelers.
Logic 2: Reason (R) is false. Token currency was not made of gold (it was copper/brass) and its motive was to compensate for silver scarcity, not specifically for West Asian trade promotion.

Active Recall

Question

Why did the token currency experiment fail?

Answer

The state failed to maintain a monopoly on minting, leading to large-scale counterfeiting by citizens in their own homes.

Core Insight

While MBT is often called 'mad', his currency reforms were based on sound economic principles used in China and Iran; the failure was one of administrative execution.