Previous Year Question
Given below are two statements, one labelled as Assertion (A) and the other as Reason (R).
Assertion (A): Akbar, like Shershah, tried to regulate the currency of the state.
Reason (R): As in Shershah's currency, the chief copper coin of Akbar's time was the Dam.
Select the correct answer from the codes given below:
Both (A) and (R) are true and (R) is the correct explanation of (A)
Both (A) and (R) are true, but (R) is not the correct explanation of (A)
(A) is true, but (R) is false
(A) is false, but (R) is true
Correct Answer: B
Detailed Solution
Sher Shah Suri introduced important reforms in the currency system. He standardised the silver coin known as the Rupaya and developed a more organised currency system based on gold, silver and copper coins.
Akbar carried forward the foundations of the currency system established by Sher Shah and gave it a more extensive and organised form. In the Mughal currency system, the gold Mohur, silver Rupaya and copper Dam were the major coins. Therefore, Assertion (A), concerning Akbar's regulation of the state currency, is correct.
Reason (R) is also correct. During Akbar's reign, the Dam was the chief copper coin used for ordinary small transactions. It weighed about 323 grains, and in the later years of Akbar's reign, 40 Dams = 1 Rupaya was generally used for accounting purposes.
Akbar's currency system continued the tradition of standardisation that had developed under Sher Shah. Thus, there was clear continuity between the currency systems of the two rulers.
However, the fact that the Dam was the chief copper coin under Akbar does not explain why Akbar tried to regulate the currency system. It is a feature of his currency system, not the cause of currency regulation.