Economics

COURSE

CFAI understands that high quality investment advisors and portfolio managers need to have base comp...

The total output of an economy can be represented by a national income measure called Gross Domestic...

According to the One Third Rule, the changes in productivity in the US economy can be estimated as f...

The productivity curve places Real GDP/Labor Hour (or productivity) on the y-axis and Capital per Ho...

**Classical growth theory** Classical growth theory connects population growth to the growth of lab...

Governments may regulate for economic reasons or social reasons. - **Economic regulation** – Seek...

- GDP is the total output of all economic activity in a country over a given period and a country’...

As different global economies specialize, nations can gain from trading with one another by creating...

The account statement which summarizes the transactions of a country’s citizens with foreigners is c...

There are two major categories of exchange rate systems: - **Flexible or Floating** – laws of sup...

- In a floating rate exchange system, a supply and demand relationship exists between the price of...

Fixed Exchange Rate Systems require active intervention by the government to keep the currency value...

- **[Spot market](https://financetrain.com/understanding-spot-fx-transactions/ "Understanding Spot...

Forward contracts commonly trade at premiums or discounts to the [spot rate](https://financetrain.co...

Interest Rate Parity attempts to explain the difference between forward and spot rates as explained ...

- PPP theoretically links the movements in exchange rates between two countries to the changes in ...

Economist Irving Fisher is credited with the inflation expectations theory of interest rates, which ...

Uncovered [interest rate parity](https://financetrain.com/interest-rate-parity/ "Interest Rate Parit...

An analyst can apply the Absolute PPP theory ([Purchasing Power Parity](https://financetrain.com/pur...

**Recommendations** - Spend four hours reading Study Session 4 of the Level II CFA Program Curric...