- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 12. Monetary and Fiscal Policy
- Subject 5. Monetary Targeting Rules
CFA Practice Question
Which of the following is least likely to be a tool available to central banks for implementing monetary policy?
A. Adjusting taxation
B. Managing interest rates
C. Inflation targeting
Explanation: Adjusting taxation is not a tool available to central banks. Only the government can adjust taxation, as it is a fiscal policy tool.
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