Academy uymiz Jay (BOX SPRING MAKER II)

Ah, that is a very pertinent question. A government creates a buffer stock for two primary reasons: food security and price stability.

Think of it as a national safety net, usually for essential food grains. When there is a bumper crop and a surplus of food, the government buys the excess. This action supports farmers by preventing prices from collapsing. It ensures they receive a fair price for their produce.

Conversely, during a poor harvest or a national crisis, a shortage occurs. The government then releases these stored grains into the market. This increases the supply, which keeps prices from soaring and ensures food remains affordable for everyone. It is a tool for managing extremes.

This is a good question. It is confusing.

A low number for a currency does not mean the country is weak. Japan has a very big and strong economy. The number on the money is just a number. The main reason is history. After World War II, Japan's economy was rebuilt. They set the yen at a very low value, 360 yen to 1 US dollar. They never changed this by cutting zeros. India's rupee has a different history.

Also, Japan's bank has kept interest rates very low for many years. This also makes the yen's value stay lower. So, it is not about strong or weak. It is more about history and the bank's plan.