Question

Answer the following questions.

1. Name the currency shown in the image.
2. Which ruler introduced this currency?
3. Explain why introducing this currency was not a good move.

Answer 1

1. Token currency
2. Sultan Muhammad bin Tughlaq introduced this token currency.
3.  It was not a good move because the state could not control minting many houses began producing fake coins, the economy and trade were flooded with counterfeit tokens, and the government treasury suffered heavily when the Sultan had to withdraw the coins and exchange them for gold and silver. This drained the treasury and harmed the empire’s economy.