Question

Introduction to token currency by muhammad bin tughlaq

Answer 1

Mohammed bin Tughluq's token currency system was a system in which currency would be minted by the people, but the value would be determined by the Sultan. This scheme failed because many fake coins and nuggets were minted that the scheme had to be disbanded.

Answer 2

Answer:

Muhammad Tughluq also paid his soldiers cash salaries. But instead of controlling prices, he used a “token” currency, somewhat like present-day paper currency, but made out of cheap metals, not gold and silver. People in the fourteenth century did not trust these coins. They were very smart: they saved their gold and silver coins and paid all their taxes to the state with this token currency. This cheap currency could also be counterfeited easily.

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