To enter the world of finance and investment CFA level 1 Economics can be a stepping stone. Chartered Financial Analyst famously abbreviated as CFA is a title or designation earned by those who have successfully undertaken and completed the CFA Program. It’s a three-part exam that tests the basics of candidates regarding concepts such as portfolio management, wealth management, and various investment tools.
It’s generally opted for by people who come from a background in finance, accounting, or business. After successful completion of the Program, they are eligible to use the designation and get accepted by the CFA institute. They can pursue their career and take up senior roles in asset management, investment management and managing risk portfolio companies.
The Program is quite relevant to our evolving financial and investment scenario. By taking up this course you can see a variety of career paths opening up for you. You can be easily promoted to decision-making roles in the domains of investment management, asset management, and investment banks. CFA Level 1 free course can be undertaken by candidates who haven’t yet made up their minds regarding the exam. This will be a basic introduction to the program and the preparation required to complete it.
What is CFA Level 1 Economics?
CFA Economics gives an overview of economic theories and frameworks which provides the foundation tools for analyses for the entire CFA curriculum. It covers both micro and macro college-level introductory courses. Apart from that it also deals with other topics at length which is not for college-level courses. It can be said to be the next level of a college curriculum. Some new topics are also introduced like foreign currency exchange and currency markets.
CFA Level 1 economics deals with central micro and macro concepts and principles which is related to financial and investment analysis. The weightage of economics in the 180 CFA Level 1 exam hovers around 16-22. It spans 7 readings and contains 79 LOS. The economics section is approximately 11.6% of the total weightage of the exam.
The syllabus of economics includes demand and supply analysis, film and market structures, aggregate output, prices and economic growth, understanding business cycles, monetary and fiscal policy, and currency exchange rates.
Economics is going to be the central pillar of this exam along with other disciplines such as Ethics or Financial statement Analysis. So CFA level 1 economics is the basic course which needs to be undertaken to gradually move towards the next step. It’s essential to build a solid foundation in CFA Level 1 economics to progress to levels 2 and 3.
1. Logical Approach
Economics falls under the domain of social sciences so it can be easily connected to real-life situations and problems to arrive at solutions. Candidates preparing for CFA Level 1 economics should not make it a mundane exercise of memorising formulas, and topics. It’s humanely not possible to do that and not advisable. Instead one should use logic and derivations by interconnecting with the world around and understanding this subject.
2. Get a Grip on Graphs
Graphs are one of the easiest mediums to understand the subject of economics. Visual representation can help you tremendously to understand concepts and apply them. With the help of graphs, you can get a better understanding. So, use graphs to learn your concepts whenever you can.
3. Practice is the Key
No matter how well you seem to understand any topic or concept of economics or any other subject, your preparation will be incomplete without practice. Practice is the final step to honing your understanding. It’s also a test to apply if you are capable of applying your knowledge or understanding in the exam. It’s rightly said that only practice can make a man perfect. And by practice, I mean religiously practising. Getting a QBank or solving some papers will push you ahead of others.
4. Getting Expert’s Help
The CFA exam can be daunting for beginners. We are not here dealing with only graduate-level knowledge but trying to deepen our understanding of different domains. For this, you can avail of various courses offered through various institutions to help you clear this exam which offers a promising career. Take a CFA level 1 free course online to familiarise yourself with the CFA exam and the various subjects. Through free courses, you wouldn’t need to spend a fortune on your career.
The CFA Program is a step towards propelling your career growth. Candidates who aspire to have a promising role in the future in investment, finance or asset management should give utmost importance to this program. CFA Level 1 free course will help you to get a broad view of this program and if you are ready to give it a try.