[Solved] Muhammad-Bin-Tughlaq's Coinage | UPSC History

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.
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[UPSC CSE Pre 2006]

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Correct Option: C

Assertion (A) is true; Tughlaq did issue a gold Dinar. Reason (R) is false; his token currency experiment used copper/brass, not gold, and was due to metal shortages.

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.

Analysis & Evidence

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.

Authentic Source Evidence

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.

Analytical Breakdown

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.

Historical Logic Quest

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

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.

The Topper's Edge

"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."

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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:*