Multiple choice

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

  1. Bank Rate

  2. CRR

  3. Free Market Policy

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

Free Market Policy is not helpful in controlling money supply. A free market is an economic system that allows supply and demand to regulate prices, wages, etc, rather than government.[1] Free markets contrast with controlled markets in which prices, supply or demand are directly or indirectly controlled by government. 

Keep practicing — related questions