What type of international commodity agreement involves the purchase of the commodity when its price falls below an agreed minimum price,and the sale of the commodity when its price rises above the established maximum price?
A)Buffer stock
B)Export controls
C)Purchase contracts
D)Marketing Board

Question

What type of international commodity agreement involves the purchase of the commodity when its price falls below an agreed minimum price,and the sale of the commodity when its price rises above the established maximum price?
A)Buffer stock
B)Export controls
C)Purchase contracts 
D)Marketing Board

Quizplus · Accepted Answer

A buffer stock agreement involves the purchase of a commodity when its price falls below a predetermined minimum and the sale of the commodity when the price rises above a predetermined maximum. This helps to stabilize prices and prevent extreme fluctuations in the market.

What Type of International Commodity Agreement Involves the Purchase of the Commodity