Consider the following statements:

1. Pali texts contain the first definite references to coins, e.g., kahapana, nikkha, kamsa, and kakanika.
2. The literary evidence from Pali texts is corroborated by archaeological evidence of punch-marked coins from many sites, most of them made of silver.

The above statements have been associated with which of the following?

1. Emergence of urban life
2. Transition to money economy

Select the answer using the code given below:

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Explanation

Both statements are correct

• The references in Pali texts to coins such as kahapana, nikkha, kamsa, and kakanika indicate the use of currency in ancient India. This, along with Archaeological findings of punch-marked coins, was associated with the sixth century BCE, which is often considered a major turning point in early Indian history.
• It is an era associated with:
  • Development of new towns or urban life (beginning of the second urbanisation in India)
  • Emergence of early states, kingdoms and empires
  • Growing use of iron
  • Flourishing arts, crafts and trade
  • Development of coinage (Coins or Metal Money): Metal coins first appeared around the sixth century BCE. The circulation of punch-marked coins shows a shift from barter-based exchange to a monetary economy where transactions increasingly used currency.

Answer: (c) Both 1 and 2; Difficulty Level: Easy