Question

2. Why did Muhammad bin Tughluq introduce token currency? What were the results?​

Answer 1

Answer:

Muhammad bin tughlaq has lost a great deal of his wealth due to bad decisions. He decided to introduce token currency in brass and copper , in place of gold and silver. The sutan issued an order that people should use and accept coins just like gold and silver coins .

The new sultan issued the copper coins in place of Silver Tanka as a token currency. But he failed to realize that the issuing authority should be under the king only. As a consequence, every household started making the copper coins. The token money lost its value and its credit which made the government poor.

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Answer 2

Muhammad bin Tughluq introduced the token currency as a part of his controversial step. It meant introduction of bronze tanka in place of silver tankas. This was done because of shortage of silver.



It’s result
This experiment failed due to the circulation of counterfeit or fake coins on a very large scale, which cost chaos in trade and commerce. Consequently, he withdrew the token currency


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