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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


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

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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