STUDY SESSION 4
Economics : Microeconomics and Macroeconomics
Candidates should be familiar with the material covered in the prerequisite economics readings available in your Candidate Resources on the CFA Institute website:
■ Demand and Supply Analysis: Introduction
■ Demand and Supply Analysis: Consumer Demand
■ Demand and Supply Analysis: The Firm
This study session provides an introduction to fundamental microeconomic and macroeconomic concepts relevant to investment management practice. The first reading in this study session covers selected concepts and tools of demand and supply analysis. The second reading describes revenues and cost structures associated with the different types of markets in which firms sell output. The third reading covers aggregate output and income measurement, aggregate demand and supply analysis, and the analysis of the factors affecting economic growth. The final reading explains the effects of business cycles on businesses and investment markets.
READING ASSIGNMENTS Reading 14 Topics in Demand and Supply Analysis
Reading 15 The Firm and Market Structures
Reading 16 Aggregate Output, Prices, and Economic Growth
Reading 17 Understanding Business Cycles
STUDY SESSION 5
Economics : Monetary and Fiscal Policy, International Trade, and Currency Exchange Rates This study session begins by presenting monetary and fiscal policy, then introduces economics in a global context. The first reading describes monetary and fiscal policy and how they are used by central banks and governments. The second reading discusses the flows of goods and services, physical capital, and financial capital across national borders. The reading explains how the different types of flows are linked and how trade may benefit trade partners. The final reading provides an overview of currency market fundamentals.
Reading 18 Monetary and Fiscal Policy
Reading 19 International Trade and Capital Flows
Reading 20 Currency Exchange Rates