- CFA Exams
- CFA Exam: Level I 2021
- Study Session 5. Economics (2)
- Reading 16. Monetary and Fiscal Policy
- Subject 5. Monetary Targeting Rules
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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