Question : The food stocks that are built up during the years of bumper harvest are called:
Option 1: capital stock
Option 2: buffer stock
Option 3: production stock
Option 4: grain stock
Correct Answer: buffer stock
Solution : The correct option is buffer stock .
Buffer stocks refer to reserves of essential commodities, like food, that are maintained by governments or international organisations. These stocks act as a cushion against sudden fluctuations in supply or demand, helping stabilise prices and supplies. They play a crucial role in ensuring food security and stabilising agricultural markets. Buffer stocks can be released during times of scarcity to prevent extreme price spikes and can also be used in emergencies to ensure an adequate supply of essential goods.
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