CFA Program Coaching Level One Economics Full Course by CA Bhupesh Anand
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- Berta Jain
- December 12, 2022
Candidates will study how international financial organizations influence and facilitate international trade and the implications of various trade and capital restrictions. This reading explores the benefits of international trade and describes the dynamics of trading blocs, common markets, and economic unions. Seven readings (8-14) center on Economics (11.6% of the curriculum). Each topic is further divided into readings which cover a specific area of that topic.
Always review the MCQs at the end of each chapter of the CFAI. The CFA Economics topic has a weighting of 5-10% of the total exam content. The Level 3 CFA exam contains 8-11 constructed response questions and 44 multiple-choice questions.
Use the Cheat Sheets during your practice sessions to refresh your memoryon important concepts. You will undoubtedly adjust your study time to conform to your own strengths and weaknesses and to your educational and professional background.
Candidates will learn to distinguish between various market structure classifications and how each structure influences the outcomes of demand and supply relations. Professor James’ videos are excellent for understanding the underlying theories behind financial engineering / financial analysis. The AnalystPrep videos were better than any of the others that I searched through on YouTube for providing a clear explanation of some concepts, such as Portfolio theory, CAPM, and Arbitrage Pricing theory.
Insights into capital markets should also aid in tsecurity selection and asset valuation. Capital market expectations are expectations about the risk and returns of asset classes, however broadly or narrowly defined by the investor. Capital market expectations are an important factor in strategic asset allocation. At 5-10% of the exam content, Economics is among the three least heavily weighted topics.
One of the challenges with CFA exam is that you not only need to learn concepts but you should also be able to revise and reproduce on the day of the exam. 1) Increases in Expected inflation, Income, Profits, Foreign incomes and Increases in Domestic exhcange rate. Increases in 1) Quantity of labor; 2) Quantity of capital in the economy; 3)Technology the economy possess.
Explaining a board game on paper can only get you so far – at some point it’s easier and more engaging to get going. Similarly, with Economics, it can be helpful to focus on the examples given and run through a few step-by-step. If you need more examples than the ones given in the study text, move to a few practice exams or get our Free L1 Practice Test. As it is very text-heavy, when studying Economics, you may find your mind ‘blanking out’, where you’re reading but not really comprehending. Economics is a central topic in finance, with a similar topic weight across all 3 levels of the CFA exams. As part of the supplemental study tools that are included in your examination registration fee, you have access to a study planner to help you plan your study time.
If the actualexchange rate differsfrom the no-arbitrage exchange rate implied by the cross-rate, then anarbitrage opportunity exists. An investor can profit bypurchasingacurrencyfrom the source where it isunderpricedandsimultaneously sellingthe same currency to the source where it isoverpriced. designerdram This reading introduces how money is created, the role of central banks, and various theories regarding the demand for and supply of money. Governments in developed countries have an outsized impact on their economies due to the size of the workforce they employ and of their fiscal budgets.
Macroeconomics is the study of aggregate economic activity, typically applied to entire nations. This may be the sum of all business expenditures, total consumption, the overall level of interest rates, etc. Analysis of such variables is critical in the analysis of a nation’s aggregate output and income, labor productivity, inflation rates, competitive advantages, etc.