pls answer me soon
explain token currency scheme.
Answers
Answer:
Tughlaq was a ruler who delighted in administrative experiments. When famine-like conditions and frequent revolts began straining his coffers, Tughlaq found it difficult to maintain the supply of gold (dinars) and silver (adlis) coins on a large scale. So, he introduced a token currency system and minted vast quantities of new copper and brass coins (tankas) that could be exchanged for fixed amounts of gold and silver.
While this decision helped the Sultanate’s finances initially, it also proved to be lucrative to forgers who began issuing a large number of fake coins. Loopholes like a simple design (the coins just had some inscriptions) and no royal seals made the task easier for forgers. Every house became a mint for copper coins while gold and silver coins were zealously hoarded.
Answer:
Hii..
As the Sultan of Delhi, Tughlaq ruled over northern parts of the Indian subcontinent and the Deccan. After he moved his capital to Daulatabad, in 1329, Tughlaq introduced representative or token money. These were coins of copper and brass that could be exchanged for fixed amounts of gold and silver from the Delhi Sultanate.
In 1330, after his failed expedition to Deogiri, he issued token currency; that is coins of brass and copper were minted whose value was equal to that of gold and silver coins.
Muhammad Tughlaq issued token currency because there was a shortage of gold coins and the Sultan on the other hand needed money. He tried to follow the footsteps of the Emperor of China who had issued paper currency in China in the 13th century.
This you can say was a foolish idea as he issued copper coins in the same value of gold and silver.