Hierarchy of the 'Anand Pattern' cooperative structure:

• Apex / State Level: State Milk Federation (B) manages marketing of milk and milk products outside the district and state.
• District Level: District Cooperative Milk Producers' Union (C) processes milk and provides veterinary and technical inputs.
• Village Level: Primary Village Dairy Cooperative Society (D) collects milk from farmers daily.
• Base Level: Individual farmer members of the society (A).
  Top-to-bottom sequence: (B) $\rightarrow$ (C) $\rightarrow$ (D) $\rightarrow$ (A).

Physical functions of marketing and utility creation:

• Statement (I) is true: Agricultural marketing functions are classified into physical functions (storage, transportation, processing), facilitating functions (grading, financing, risk-bearing), and exchange functions (buying and selling). Storage is a primary physical function.
• Statement (II) is true: Agricultural produce is seasonal in harvest but demanded throughout the year. Storage bridges the gap between harvest and consumption, thereby creating time utility.
• Both statements are true.

Monetary transmission mechanism:

• When the central bank contracts the money supply ($M_s \downarrow$), excess demand for money drives interest rates upward ($r \uparrow$).
• Higher interest rates increase the cost of borrowing capital for firms, causing planned capital investment projects to become less profitable (marginal efficiency of capital $\lt r$).
• Consequently, private business investment declines ($I \downarrow$).