Answer: (c)

Explanation:
Statement 1 is correct: The Pali texts provide some of the earliest literary references to coined money such as kahapana, nikkha, hamsa, and kakanika, indicating the presence of monetary transactions in early historic India.

Statement 2 is correct: These references are strongly supported by archaeological findings of punch-marked coins, many made of silver, discovered at multiple sites across the Gangetic plains, confirming the use of standardised currency.

These developments are closely linked with the emergence of urban life, as growing towns required more complex systems of exchange, trade, and taxation. They also clearly indicate a transition to a money economy, moving away from barter-based exchange toward the use of coined currency in regular transactions. Therefore, both statements are associated with both urbanisation and the rise of a monetised economy, making option (c) correct.