- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 4. Monetary Policy
- Subject 3. Monetary Policy Objectives
CFA Practice Question
One of the crucial ingredients for an effective central bank to implement inflation targeting is ______.
B. credibility
C. prudence
A. consistency
B. credibility
C. prudence
Correct Answer: B
The other two crucial ingredients are independence and transparency.
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