About Economics for the Level I CFA Exam

This forum contains discussion of Economics for the Level I CFA exam.

  • Economics is covered in Study Sessions 4 and 5
  • Economics has an exam weight of 10%

Study Session 4

“This study session begins by introducing fundamental concepts of demand and supply analysis for individual consumers and firms. Also covered are the various market structures (perfect competition, oligopoly, monopoly) in which firms operate. Key macroeconomic concepts and principles then follow, including aggregate output and income measurement, aggregate demand and supply analysis, and analysis of economic growth factors. The study session concludes with coverage of the business cycle and its effect on economic activity. ”
Source: CFA Institute

Study Session 5

“This study session begins with monetary and fiscal policy, including their use by central banks and governments. Economics in a global context is then introduced. Next follows a discussion on the flows of goods and services and physical and financial capital that occur across national borders. Highlighted in the discussion are the relationships between different types of flows and the benefits of trade to trade partners. Finally, given that operations and investments in global markets involve foreign exchange (currency) risk, the session concludes with an overview of currency market fundamentals.”
Source: CFA Institute