- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 4. Monetary Policy
- Subject 2. Monetary Policy Tools and Monetary Transmission
CFA Practice Question
The key objective of monetary policy is ______.
A. stable prices
B. maximum employment
C. trade surplus
Explanation: Price stability encourages the maximum sustainable growth rate of potential GDP.
User Contributed Comments 2
User | Comment |
---|---|
bidisha | Wait I thought the fed had a DUAL mandate of : maximum employment and price stability |
sevywonder | @bidisha that's just the Fed- central banks elsewhere may not have that mandate |