The stock of food grains like wheat and rice procured by the government through Food Corporation of India (FCI) is called ______ stock.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. buffer.
Buffer Stock:
- The stock of food grains like wheat and rice procured by the government through the Food Corporation of India (FCI) is called buffer stock.
- It acts as a safeguard against fluctuations in supply and demand, mitigating potential price hikes or disruptions in supply.
Other Options
Utility service: They are basic essential services that people need for daily living. They are usually provided by the government or regulated companies. Example: water supply electricity, transport etc.
Corporation: It is a type of business organization that is legally separate from its owners and operates to produce goods or services for profit.
Public: It is a company whose shares are traded openly on a stock exchange, and anyone from the public can buy them and is regulated by SEBI.