Multiple choice

Which of the following is not helpful in controlling money supply?

  1. Free market policy

  2. CRR

  3. Bank rate

  4. Change in margin requirement
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Free market policy is not helpful in controlling money supply because it reduces government and central bank intervention in the economy. In contrast, CRR (Cash Reserve Ratio), Bank Rate, and changes in margin requirements are direct monetary policy tools used by the RBI to control money supply.

Keep practicing — related questions