in CFAi book5, P384, Q1. which of following is not a central-bank tool for affecting financial markets? A. rate of inflation B. systemic liquidity C. market expectations D. short term interest rates – the answer is book is B. the explanation is the rate of inflation is one of the factors that central banks try to control with such tools as systemic liquidity, market expectations, short term interest rates. Thus, I think the correct answer should A. rate of inflation
it is a typo of CFAi book. I just checked the errata at CFAi website. Damn CFAi, charged us so much for exam and book, it is crap.
Concur. Far too many typos, and errors.