Direction: Answer the following questions by selecting the correct/most appropriate options.Which of the following forms the trading arrangement between a weaver and a merchant under the “Putting out” system? Choose the correct option.

• A. Yarn is bought for the lowest bid from merchant; and cloth is sold at highest bid.
• B. Yarn is sold to the weaver by the merchant; and weaver makes cloth for self-consumption.
• C. Yarn is supplied by the merchant to the weaver and cloth produced is bought back from weaver at a low price.
• D. Yarn is bought by weaver from the open market and cloth is sold to merchant at a low price.