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Basic Question 8 of 15
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?
B. Credibility
C. Transparency
A. Independence
B. Credibility
C. Transparency
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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.