📚 CBSE Grade-10 Study Guide
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Social Science (087) — AI-generated practice question

AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.

Q1. [2] deep thorough-understanding
After the potato harvest, a farmer considers two options: selling the crop immediately at low post-harvest prices, or storing it in a cold storage facility and using the warehouse receipt as collateral to obtain a fresh bank loan. Explain the financial reasoning behind choosing the second option and what it reveals about the relationship between credit access and farmers' bargaining power.
Generated by claude-sonnet-4-6 · 2026-06-26 13:25 · grounding rag
Model Answer

By storing potatoes and using the cold storage receipt as collateral, Arun can obtain a fresh bank loan at a low interest rate (8.5% p.a.) instead of selling at low post-harvest prices. This allows him to wait for prices to rise before selling, maximizing income. Access to formal credit thus gives farmers bargaining power to avoid distress selling.

Source: Chapter 3, Example of a Village

Explanation

The examiner wants two linked ideas: (1) the financial benefit — avoiding low post-harvest prices by deferring sale, funded by the bank loan; and (2) the connection to bargaining power — formal credit frees the farmer from being forced to sell immediately. Contrast with Shyamal, who borrows from a trader and is forced to sell at harvest time at low prices. Keep both points clear and concise.

Previous-year CBSE Grade 10 board exam questions, organised by subject and chapter, each with a model answer — free to read and print.