CTET PAPER 2 · SST

Which of the following forms the trading arrangement between a weaver and a merchant under the “Putting out” system ? Choose the correct option.

  1. Yarn is bought for the lowest bid from merchant; and cloth is sold at highest bid.
  2. Yarn is sold to the weaver by the merchant; and weaver makes cloth for self-consumption.
  3. Yarn is supplied by the merchant to the weaver and cloth produced is bought back from weaver at a low price.
  4. Yarn is bought by weaver from the open market and cloth is sold to merchant at a low price.
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