Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 5 of 6
A central bank can directly set ______.
B. the short-term interest rate but not the monetary base
C. either the monetary base or the short-term interest rate but not both
A. the monetary base but not the short-term interest rate
B. the short-term interest rate but not the monetary base
C. either the monetary base or the short-term interest rate but not both
User Contributed Comments 4
| User | Comment |
|---|---|
| YOUCANDOIT | what ta central bank can't directly set is price level (inflation). |
| choas69 | what is monetary base? |
| choas69 | its the monetary base mate. |
| sshetty2 | changing the money supply; open market operations I think. |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe the roles and objectives of central banks
CFA® 2025 Level I Curriculum, Volume 1, Module 4.