Multiple choice

Which of the following functions is not actually perfomed by a warehouse keeper, but is automatically performed by warehousing?

  1. Stock piling

  2. Price stabilisation

  3. Financing

  4. Break the bulk

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The function of price stabilisation is not actually performed by warehouse keeper, but is automatically performed by warehousing or storing the goods in the warehouses. When there is excess supply, goods can be held back in warehouses to avoid fall in prices. When there is shortage of goods, the goods can be supplied from warehouses to avoid rise in prices. Hence, there is price stabilisation just by storing the goods in warehouse.

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