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Parallel markets are usually the results of

...

Parallel markets are usually the results of

A.

Excess supply

B.

The activities of rich individuals

C.

Price legislation

D.

Inadequate information

Correct answer is C

A parallel market arises when the government limits the amount of foreign exchange that can be bought or sold for particular transactions, causing excess demand or supply to spill over into a parallel market, or authorizes that exchange rates for certain transactions be pegged and for other transactions be floating.