How to disable purchases without password

Purchases can now be done from my Ipod touch without password. How do I change the settings to require password for all purchases, but allow free downloads?

A password is required for all app purchases, free pr paod inclided updateds.  Once you enter your password, you will not have to reenter it for about 15 minutes.  You can go to Settings>General>Resetrictions and set restrictions that prevent app purchases, prevent in-app purchases, and require a password for in-app purchases.

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