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Basic Question 4 of 15
One of the crucial ingredients for an effective central bank to implement inflation targeting is ______.
B. credibility
C. prudence
A. consistency
B. credibility
C. prudence
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Learning Outcome Statements
describe qualities of effective central banks; contrast their use of inflation, interest rate, and exchange rate targeting in expansionary or contractionary monetary policy; and describe the limitations of monetary policy
CFA® 2025 Level I Curriculum, Volume 1, Module 4.