Question :
Which of the following is not helpful in controlling money supply?
Option 1:
Free market policy
Option 2:
CRR
Option 3: Bank Rate
Option 4: Change in margin requirement
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Correct Answer:
Free market policy
Solution : The correct option is Free market policy
An economy that is governed by free markets is one that is unregulated. Only supply and demand are taken into account when setting prices in a fully free market. Free markets are characterized by the absence of coerced (forced) transactions or conditions on transactions. The methods used by central banks to manage the money supply include influencing interest rates, printing money, and establishing bank reserve requirements.
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