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Discuss, with examples, the significance of monetary transactions during the period under consideration . |
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Answer» Solution :(i) The political STABILITY provided by the Mughal helpe in establishing sound trade relation with Ming (Chian), Safavid (Iran) and Ottoman (Turkey) empires. It led to increase in outland trad from Chinato Mediterranean Sea. (ii) The discovery ofnew LANDS and sea routes also gave an inpetus to Asia.strade with Europe. As a resultenormous amount of silverentered INDIA as payment for goods bought from India. (iii)Giovanni Careri, an Italian traveller, who passed throughIndia in 1690 has written howthe silver reached India from all parts of the world. From his description,we also cameto know how therewas an exchange of cash and goods in India in the 17th century. (iv)Thisbenefitted Indiaas she did not have enough resources of silver . Therefore, from the sixteenth to theeighteethcenturies therewassufficient reserves of silver in India and the silver rupyawas available readily. (v) Themutual exchange in villagestook place. As villagers established their linksin the urbanmarkets, there was a considerable increase in monetary transactions. In this way villages became an important part of the monetary market. (vi)It was due to the monetary transactions, it became easier to pay daily wages to thelabourersin cash and not in kind . This resulted in an unprecedented expansion in the mintingof coins and circulation of MONEY allowing theMughal stateto extract taxesand REVENUES incash . |
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