Consider the following statements

1. Assertion (A): Muhammad bin Tughlaq issued a new gold coin which was called Dinar by Ibn Battuta.
2. Reason (R): Muhammad bin Tughlaq wanted to issue token currency in gold coins to promote trade with West Asian and North African countries.

Select the correct answer using the code given below:

1. Both A and R are individually true and R is the correct explanation of A.
2. Both A and R are individually true but R is not the correct explanation of A.
3. A is true but R is false.
4. A is false but R is true.

Explanation

Option (c) is correct

• Muhammad bin Tughlaq introduced a new gold coin known as the Dinar (called Dinar by Ibn Battuta). He also issued a silver coin called the Adli and undertook important currency reforms during his reign.
• Muhammad bin Tughlaq introduced a token currency around 1330 CE to tackle the shortage of silver in the royal treasury. Drawing inspiration from the currency system used in China under Kublai Khan, he issued copper coins (Jitals) and assigned them the same value as silver tankas. However, since the concept of token currency was unfamiliar in India and there was no effective control over minting, counterfeit coins were produced on a large scale. The widespread forgery disrupted the economy and undermined public confidence in the currency. Consequently, the Sultan withdrew the scheme and agreed to exchange the copper coins for silver coins.

Answer: (c) A is true but R is false.