CFA Level 2: Economics - Introduction

CFAI understands that high quality investment advisors and portfolio managers need to have base competency in economic theory in order to value and forecast asset prices.  Economic concepts in Level II focus on: economic growth, the impacts of government regulation on an economy, gross domestic product as a measurement of a country’s economic output, international trade concepts, exchange rate systems, and currency markets.

This tutorial aligns with the latest Level II CFA Program Curriculum ©.  Students can expect to see one item set from this material, however items covered under the currency markets section of this series will appear in other exam sections (as well as Level III), so that must be kept in mind.


We will cover the following broad topics:

I.          Economic Growth

II.        Government Regulation

III.       Gross Domestic Product (or Measuring Economic Activity)

IV.       International Trade

V.        Foreign Exchange Rate Systems and Parity Relationships