Distinguish between buffer stock and stabilizing fund policies
A buffer stock is a system or scheme which buys and stores stocks at times of good harvests to prevent prices falling below a target range (or price level), and releases stocks during bad harvests to prevent prices rising above a target range (or price level); whereas stabilization fund refers to government policy of creating fund or pool from where it draws money to effect payments when prices fall.
CATEGORIES Economics
TAGS Dr. Bbosa Science