CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

Which key element allows the central bank to set its own ultimate goals (price stability, stable employment, and so on) and decide how best to achieve those goals?

A. Independence
B. Credibility
C. Transparency
Correct Answer: A

Goal independence allows the central bank to set its own ultimate goals and instrument independence allows the central bank to decide how best to achieve those goals.

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