01 What importance may smaller Harappan towns have had in trade?
Answer and explanation
Correct answer: B. They served as local production and regional exchange centres
Explanation: The governing concept is settlement hierarchy within a regional exchange system. Smaller towns could collect local agricultural products, craft goods, or raw materials and exchange them with nearby communities or larger urban centres. Therefore option B is correct. They were not necessarily excluded from trade, nor were they limited to military or funerary functions as suggested by A, C, and D.