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Basic Question 11 of 15

If a central bank decides to increase interest rates, its monetary policy is said to be ______.

A. contractionary
B. expansionary
C. neutral

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

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.