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 ? 1. Emergence of urban life 2. Transition to money economy Select the answer using the code given below :
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2 ✓ UPSC's answer
- (d) Neither 1 nor 2
Why the answer is (c)
• Pali canonical texts (c. 6th–4th century BCE) name coins such as kahapana, nikkha, kamsa and kakanika, and archaeology confirms silver punch-marked coins from the same period.
• Coinage points to a transition from barter to a money economy, since exchange, wages and taxes could now be reckoned in standard units.
• The same period saw the 'second urbanisation' of the Ganga valley; coins circulated in the new towns where trade, crafts and markets concentrated.
• Money and towns grew together, so both inferences (1 and 2) are associated with the statements.
• Neither can be excluded: urban life without coinage or coinage without urban trade would contradict the evidence cited.
Why the other options are wrong
- (a) 1 only
- Coinage evidence equally implies a money economy, so 2 cannot be dropped.
- (b) 2 only
- Punch-marked coins belong to the second urbanisation, so 1 cannot be dropped.
- (d) Neither 1 nor 2
- Both urbanisation and monetisation are directly indicated by the coin evidence.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2026, held on 24 May 2026. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.