Consider the following statements : I. Pali texts contain the first definite references to coins, e.g., kahapana, nikkha, kamsa, and kangnika. 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 :

Option (C) — Both 1 and 2

• The emergence of punch-marked coins and monetary references in Pali texts (like kahapana, nikkha) are key markers of the Second Urbanization in Indian history (circa 6th century BCE onwards).
• The use of coins signifies the transition from barter to a money economy, which facilitated trade and commerce in the newly emerging urban centers (mahajanapadas).
• Archaeological evidence of punch-marked coins, mostly made of silver, has been found at numerous sites associated with early historic urban settlements, corroborating the Pali literary evidence.
• Both urbanization and monetization were interlinked processes. towns and cities needed a standardized medium of exchange, and coins enabled more complex economic transactions.

• 1. Emergence of urban life: Correct. The references to coins in Pali texts and archaeological finds of punch-marked coins are closely associated with the Second Urbanization in India.
• 2. Transition to money economy: Correct. The appearance of standardized coinage marks the shift from barter to a monetized economy, a hallmark of urbanization in the 6th century BCE period.