QUESTION

Medium

Ancient History

Prelims 2026

Consider the following statements :

I. Pali texts contain the first definite references to coins, e.g., kahapana, nikkha, kamsa, and kakanika. II. 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 ?

Emergence of urban life
Transition to money economy

Select the answer using the code given below :

Select an option to attempt

Explanation

The introduction of coinage in ancient India, as evidenced by Pali texts and archaeological finds of punch-marked coins, is a hallmark of the 6th century BCE. This period is associated with two major socio-economic developments:

1. Emergence of urban life: The widespread use of metallic money is a defining feature of the Second Urbanization in the Gangetic valley. The rise of the Mahajanapadas was accompanied by the growth of fortified cities (nagaras), organized artisan guilds, and long-distance trade along routes like the Uttarapatha, all of which were facilitated by the use of coins.

2. Transition to money economy: The introduction of specific coin denominations like kahapana, nikkha, kamsa, and kakanika marked a definitive shift from a purely barter-based system to a money economy. This transition allowed for standardized pricing, wage payments, and the emergence of complex economic practices such as money-lending (usury), which are extensively documented in early Buddhist literature.

Therefore, the given statements are associated with both the emergence of urban life and the transition to a money economy.

Therefore, the correct option is C.

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