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Economics is the parent of finance and investing, and as such it’s a major section of the CFA exam. In this course, we’ll cover a variety of areas you need to know as you prepare for the exam. Market structure questions are typically included on the CFA exam, so we’ll go through the different types of structures. We’ll also cover the economic calculations that are a key part of the economics section of the CFA exam, as well as business cycles which have a major impact on the success or failure of investments. Another area we will cover is government policy as it relates to the economy and the business cycle. Moreover, since international trade is playing an increasingly important role in the stock market, we will go through that as well and we’ll talk about the related FX markets, which are a key investment area and a major part of the CFA exam. Finally, since to pass the CFA exam, you need to have good test taking strategies, we will give you some points to consider when the exam time comes.

 

Learning Objectives

  • Explore economic concepts of supply and demand and associated ideas including normal and inferior goods, and substitute and complimentary goods.
  • Discover characteristics of perfect competition, monopolistic competition, oligopoly, and pure monopoly based on price, marginal revenue, marginal cost, economic profit, and the elasticity of demand under each market structure.
  • Identify and explain gross domestic product (GDP) using expenditure and income approaches.
  • Discover the business cycle and its phases including its relationship to a set of economic indicators and their uses and limitations.
  • Recognize and compare monetary and fiscal policy and the tools used in each area.
  • Discover benefits and costs of international trade including the concept of comparative advantage and the balance of payments between countries.
  • Recognize an exchange rate and distinguish between nominal and real exchange rates and spot and forward exchange rates as well as functions of and participants in the foreign exchange market.
  • Identify test taking strategies for economics problems.
Last updated/reviewed: July 26, 2020

Included In Certifications

This course is included in the following Certification Programs:

11 CoursesCFA Level 1 Preparation

  1. CFA Level 1 Prep: Introduction to the CFA Exam
  2. CFA Level 1 Prep: 1 - Ethics and Professional Standards
  3. CFA Level 1 Prep: 2 - Quantitative Methods
  4. CFA Level 1 Prep: 3 - Economics
  5. CFA Level 1 Prep: 4 - Financial Reporting and Analysis
  6. CFA Level 1 Prep: 5 - Corporate Finance
  7. CFA Level 1 Prep: 6 - Equities Markets
  8. CFA Level 1 Prep: 7 - Fixed Income
  9. CFA Level 1 Prep: 8 - Derivatives
  10. CFA Level 1 Prep: 9 - Alternative Investments
  11. CFA Level 1 Prep: 10 - Portfolio Management

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course. However being part of a series, you may consider taking all related courses in sequence: https://www.illumeo.com/curriculum/cfa-level-1-preparation

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  4:06Supply and Demand
  11:14Market Structures
  8:10GDP and Economic Growth
  8:13Business Cycles
  12:32Fiscal and Monetary Policy
  10:05International Trade
  10:26FX Markets and the CFA
  3:18Economics and The CFA
Optional
  24:57Modern Monetary Theory
CONTINUOUS PLAY
  1:08:04CFA Level 1 Prep: 3 - Economics
SUPPORTING MATERIAL
  PDFSlides: CFA Level 1 Prep: 3 - Economics
  PDFCFA Level 1 Prep: 3 - Economics Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM