Muhammad bin Tughlaq introduced a token currency using copper and brass coins to replace precious metal coins. His aim was to increase state revenue and reduce dependence on silver. However, poor control over minting and widespread counterfeiting caused the experiment to fail, forcing the Sultan to withdraw the currency later.
Who introduced token currency in the form of copper coins between 1329 and 1330? (A) Alauddin Khilji (B) Muhammad bin Tughlaq (C) Ghiyasuddin Tughlaq (D) Firoz Tughlaq
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Muhammad bin Tughlaq introduced token currency because the empire faced a shortage of silver, an essential metal for minting coins. He issued bronze and copper coins, expecting people to exchange them at fixed values like silver coins. However, there was no strict control over mints, and counterfeit coins flooded the market. Traders refused to accept the new currency, disrupting the economy. People minted fake coins at home, leading to a financial disaster. Eventually, Muhammad bin Tughlaq withdrew the tokens and compensated citizens by exchanging the coins for silver, causing huge losses to the treasury and damaging his administrative reputation.
ANSWER:
(B) Muhammad bin Tughlaq