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Question

Why did the official currency lose its value during the reign of Muhammad bin Tughlaq?

A
There was an external threat to the kingdom from foreign invaders.
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B
Tughlaq's market policy was not reviewed properly.
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C
Incompetent market officials could not revive the market economy leading to a loss in the currency's value.
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D
Widespread forgery of the coins led to an artificial economic crisis in the kingdom.
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Solution

The correct option is D Widespread forgery of the coins led to an artificial economic crisis in the kingdom.
The coins in use during the reign of Muhammad bin Tughlaq were very easy to replicate in the kingdom. Therefore, people started making their own at home and the official currency lost its value.

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