Question
Write a short note on the ‘Token Currency System’ introduced by Muhammad Tughlaq.

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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