CFA Level 1 Economics delves into the micro and macroeconomic principles of analysis dealing with finances and investments. The candidates will have to engage in exploring the important aspects of economic forecasting, conducting investment analysis from scratch, and more. 8% to 12% weightage is given to Economics in the exam, less than Ethics and Financial Statement Analysis. There are approximately 15 to 21 questions out of the total 180 questions. 2023 has seen the addition of a new module known as ‘Introduction To Geopolitics’. It covers the importance of geopolitics in management.

How You Should Prepare For CFA Level 1 Economics

There is fierce competition for becoming a CFA candidate as the position is highly coveted. Fierce competition indicates that candidates cannot afford to waste an instant if they want to become candidates. There are many strategies that they can use to ace the exam. Proceeding without a plan can be detrimental to your chances of excelling. The probability of people making it through to the next stage is less than 50%. And every people step back from appearing for the exam which brings down the percentage even further. So, the odds are enormous. 

Students are recommended to follow a six-month plan for the exam. If they start prepping 7 months before the exam it will only be good for them. You can study for 2 hours per day every week which will result in 12 hours every week. This way you can take a break of one day to unwind or revise what you have gone through. 

It is also common for applicants to possess a strong base in certain areas of the topic. So much so that they can give less time to it. They can devote this extra time to areas they do not have a strong base in. 

What A CFA Preparation Plan Should Look Like

Experts recommend that a suitable way of getting geared up for the CFA level 1 exam is to first prepare the topic, then practice, and finally perform. You can prepare for the exam by giving 50%. The preparation would entail reading, watching videos related to the course, and grasping the curriculum for gaining knowledge. Also, you should avoid skipping topics in the initial stages of preparation. 

Next, you should give considerable time to get an inkling of the pattern of the questions and plan how you wish to proceed accordingly. Practising multiple-choice questions would be a good place to kick off from. Even if you get the answers right, make sure you review the logic behind the answer. This gives you the chance to hone your knowledge. 

Preparation for the exam can be capped off with performance. This can be done with the help of mock tests. Mock tests do not need any explanation. However, mock tests should not be taken until and unless you are sure that you are thoroughly prepared. 

If you feel like you are, or have fallen behind, you can add a few more hours to your preparation for your plan of study. You know what you have signed up for. What is worth getting is never easy to get. You can also study CFA level 1 online. As the position is sought-after preparation can be carried out online as well. 

What Is In The Level 1 Economics Curriculum?

The 2023 CFA Level 1 Economics has a total of 8 learning modules and 83 LOS or Learning Outcome Statements. It covers topics in the analysis of demand and supply. Demand and supply deal with concepts based on microeconomic aspects. There are two private economic units in microeconomic theory: firms and consumers. Consumers have to do with demand and firms are related to the goods and services that have the responsibility of meeting the demand. Other areas it covers apart from demand and supply are as follows:

Structures Of Firms & Market

The structures of the market are related to how the products are priced and how much profit they can reap. In competitive markets, the likelihood of long-term profits would be unsurprisingly low but it can be achieved in markets that are not as competitive. If financial analysts are armed with the effects of market forces then they can evaluate the short and long-term prospects of a firm.

• Candidates will be taught how to distinguish between the structures in the classification of markets and how the structures have a say in the demand and supply relations.

• They will also be taught how the companies compete and interact in different market conditions such as monopolistic competition, oligopoly, and more.

Aggregate Output, Prices, & Economic Growth

This is macroeconomy and it covers the aggregate economic activity of countries casually. This can include the total of all business spending, how much has been consumed in total, the rate of interest all things considered, and more. 

Conclusion

CFA level 1 economics is quite a rigorous course and as a result, the odds are so against the applicant. The earlier you start your preparation the higher would be your chances of making it through. Make sure you start as early as possible and do not procrastinate.