- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 12. Monetary and Fiscal Policy
- Subject 5. Monetary Targeting Rules
CFA Practice Question
The Fed in the U.S. uses the ______ to determine if price stability is being achieved.
B. Dow Jones Industrial Average
C. core CPI
A. CPI
B. Dow Jones Industrial Average
C. core CPI
Correct Answer: C
The core CPI excludes food and fuel. It is thought to be less volatile than the CPI itself and is a better indicator.
User Contributed Comments 1
| User | Comment |
|---|---|
| houstcarr | no. uses core pce |