UPSC CSE Pre 2006

Economic History of the Delhi Sultanate

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 experimental policies, particularly in currency. Differentiating between his 'standard' gold coins and his 'token' currency is essential for historical clarity.

Explanation The memoirs of Ibn Battuta describe the 'Dinar' as a high-value gold coin. However, the 'token' currency experiment specifically used base metals (copper and brass), not gold.

Logical Breakup
Logic 1: Assertion (A) is true. Ibn Battuta refers to the heavy gold coin issued by Tughlaq as a Dinar.
Logic 2: Reason (R) is false. Token currency was introduced using copper and brass because of a global shortage of silver and gold. It was not 'gold token currency' and was not aimed specifically at promoting trade with West Africa.

Active Recall

Question

Why did the token currency experiment of Muhammad-Bin-Tughlaq fail?

Answer

It failed because the state could not prevent the widespread forging of copper coins, leading to massive inflation and a loss of trust in the currency.

Core Insight

A 'token' currency by definition has a face value higher than its intrinsic value. Issuing it in gold would defeat the economic purpose of saving precious metals.