Q. 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
(d) Neither 1 nor 2

Answer : C

Explanation:

Statement I is correct: The Pali canon (Buddhist texts like the Vinaya Pitaka and Sutta Pitaka) provides the earliest definitive and unambiguous literary references to specific metallic coin denominations, including kahapana, nikkha, kamsa, and kakanika.
Statement II is correct: This literary evidence is strongly corroborated by archaeology. Large hoards of actual punch-marked coins, predominantly made of silver with distinct symbols stamped on them, have been excavated across numerous Gangetic sites dating back to the 6th century BCE.
Association I is correct: The presence of a uniform currency system is inherently tied to the emergence of urban life (the Second Urbanization in India). Standardized coins facilitated complex trade networks, craft specialization, and the growth of major civic and political centers like Rajgriha, Shravasti, and Kausambi.
Association II is correct: The widespread circulation and variety of these punch-marked coins directly mark the transition to a money economy from an older, primitive barter or cattle-based system of exchange. Pali texts confirm this transition by frequently mentioning transactions, market prices, and wages calculated directly in cash.

Source: https://egyankosh.ac.in/bitstream/123456789/64791/1/Unit13.pdf