AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Although the trader charges a lower interest rate (3% per month) than the moneylender (5% per month), the trader imposes an unfair condition: Shyamal must sell his crop only to the trader. Since crop prices are low right after harvest, the trader buys the crop cheaply from Shyamal and sells it later at a higher price, making an extra profit. Thus, Shyamal loses income through this forced sale, and the overall arrangement still works against his financial interest.
Source: Chapter 3 — Money and Credit, "Variety of Credit Arrangements"
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Examiners want two clear points: (1) the tied condition — Shyamal must sell his crop to the trader, and (2) how the trader profits from low post-harvest prices at Shyamal's expense. Simply stating the interest rates are lower is not enough for full marks — you must explain the mechanism of disadvantage. Use the passage details (3% vs 5%, forced crop sale, low harvest prices) directly.