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:**
UPSC CSE Pre 2006
A. Both 'A' and 'R' are true individually true and 'R' is the correct explanation of 'A'.
B. Both 'A' and 'R' are individually true but 'R' is not the correct explanation of 'A'.
C. 'A' is true but 'R' is false.
D. 'A' is false but 'R' is true.
Answer: 'A' is true but 'R' is false.
Option c is the correct answer.
Assertion (A) is true: Muhammad-Bin-Tughluq, the Sultan of Delhi, issued a new gold coin in 1330 CE. The coin, which
weighed 200 grains, was called a Dinar by Ibn Battuta, a Moroccan traveler who visited India during Tughlaq's reign. The Dinar was intended to help standardize the currency and promote trade, but it ultimately failed due to a number of factors, including inflation and counterfeiting. Reason (R) is False: Mohammad-bin-Tughlaq introduced the "token currency system" due to a shortage of precious metals like gold and silver in the fourteenth century, not as a means to promote trade with specific regions. Token currencies do not rely on the supply of precious metals like gold or silver and are based on the trust in the issuing authority. The introduction of token currency was an economic measure to address the scarcity of gpld and silver and was not aimed at facilitating trade with West Asian and North African countries.