- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 12. Monetary and Fiscal Policy
- Subject 4. The Objectives of Monetary Policy
CFA Practice Question
If the Fed wants to fight recession, it should ______
II. raise the federal funds rate target.
III. increase the supply of money.
IV. decrease the supply of money.
I. lower the federal funds rate target.
II. raise the federal funds rate target.
III. increase the supply of money.
IV. decrease the supply of money.
Correct Answer: I and III
Lowering the federal funds rate target will increase the supply of money.
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