Which terminal serves as both reserve storage and dispensing installations?

The correct response identifies the intermediate terminal, which serves a crucial role in the petroleum supply chain. An intermediate terminal acts as a vital link between the bulk storage depots and the distribution points. It provides both reserve storage for fuel and dispensing capabilities, allowing for the efficient management of petroleum products.

In essence, the intermediate terminal is designed to hold large quantities of fuel that can be stored until needed for distribution to various end-users or smaller terminals. This flexibility allows for better inventory management and ensures that there is a readily available supply of products for dispensing purposes.

Other terminal types have different roles: a base terminal primarily focuses on receiving and storing large quantities of fuel but may not have extensive dispensing operations. A head terminal often refers to initial processing or bulk transfer points without the same level of end-user interaction. A distribution terminal, while it may handle dispensing, typically focuses more on the final delivery of products rather than acting as substantial storage facilities. Therefore, the intermediate terminal's dual function as both a storage solution and a dispensing facility sets it apart, making it the correct choice in this context.