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Basic Question 2 of 11
A central bank can directly set ______.
B. the short-term interest rate but not the monetary base
C. either the monetary base or the short-term interest rate but not both
A. the monetary base but not the short-term interest rate
B. the short-term interest rate but not the monetary base
C. either the monetary base or the short-term interest rate but not both
User Contributed Comments 4
| User | Comment |
|---|---|
| YOUCANDOIT | what ta central bank can't directly set is price level (inflation). |
| choas69 | what is monetary base? |
| choas69 | its the monetary base mate. |
| sshetty2 | changing the money supply; open market operations I think. |
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Tamara Schultz
Learning Outcome Statements
contrast the costs of expected and unexpected inflation;
describe tools used to implement monetary policy;
describe the monetary transmission mechanism;
explain the relationships between monetary policy and economic growth, inflation, interest, and exchange rates;
CFA® 2024 Level I Curriculum, Volume 2, Module 12.