How to Use the CFA Program Curriculum
Background on the CBOK
Organization of the Curriculum
Features of the Curriculum
Designing Your Personal Study Program
CFA Institute Learning Ecosystem (LES)
Prep Providers
Feedback
Economics
3
Economics (1)
8
Topics in Demand and Supply Analysis
Introduction
Demand Concepts
2.1 Demand Concepts
Price Elasticity of Demand
3.1 Extremes of Price Elasticity
Predicting Demand Elasticity, Price Elasticity and Total Expenditure
4.1 Elasticity and Total Expenditure
Income Elasticity of Demand, Cross-Price Elasticity of Demand
5.1 Cross-Price Elasticity of Demand
Substitution and Income Effects; Normal Goods, Inferior Goods and Special Cases
6.1 Normal and Inferior Goods
Supply Analysis: Cost, Marginal Return, and Productivity
7.1 Marginal Returns and Productivity
Economc Profit Versus Accounting Profit
8.1 Economic Cost vs. Accounting Cost
Marginal Revenue, Marginal Cost and Profit Maximization; Short-Run Cost Curves: Total, Variable, Fixed, and Marginal Costs
9.1 Understanding the Interaction between Total, Variable, Fixed, and Marginal Cost and Output
Perfect and Imperfect Competition, Profit Maximization
10.1 Profit-Maximization, Breakeven, and Shutdown Points of Production
Breakeven Analysis and Shutdown Decision
11.1 The Shutdown Decision
Economies and Diseconomies of Scale with Short-Run and Long-Run Cost Analysis
12.1 Short- and Long-Run Cost Curves
12.2 Defining Economies of Scale and Diseconomies of Scale
Summary
Practice Problems
Solutions
9
The Firm and Market Structures
Introduction & Analysis of Market Structures
1.1 Analysis of Market Structures
Perfect Competition & Demand Analysis in Perfectly Competitive Markets
2.1 Demand Analysis in Perfectly Competitive Markets
Elasticity of Demand
Other Factors Affecting Demand
Consumer Surplus: Value Minus Expenditure
Supply Analysis & Optimal Price and Optimal Output In Perfectly Competitive Markets
6.1 Optimal Price and Output in Perfectly Competitive Markets
Factors Affecting Long-Run Equilibrium in Perfectly Competitive Markets
Supply, Demand, Optimal Pricing, and Optimal Ouput under Monopolistic Competition
8.1 Demand Analysis in Monopolistically Competitive Markets
8.2 Supply Analysis in Monopolistically Competitive Markets
8.3 Optimal Price and Output in Monopolistically Competitive Markets
Long-Run Equilibrium for Monopolistically Competitive Firm
Oligopoly & Demand Analysis and Pricing Strategies in Oligopoly Markets: Pricing Independence Portion
10.1 Demand Analysis and Pricing Strategies in Oligopoly Markets
Oligopoly & Demand Analysis and Pricing Strategies in Oligopoly Markets: The Cournot Assumption Part
Oligopoly & Demand Analysis and Pricing Strategies in Oligopoly Markets: The Nash Equilibrium part
Supply Analysis & Optimal Price and Output & Long-Run Equilibrium in Oligopoly Markets
13.1 Optimal Price and Output in Oligopoly Markets
13.2 Factors Affecting Long-Run Equilibrium in Oligopoly Markets
Monopoly & Demand & Supply & Optimal Price and Output in Monopoly Markets
14.1 Demand Analysis in Monopoly Markets
14.2 Supply Analysis in Monopoly Markets
14.3 Optimal Price and Output in Monopoly Markets
Price Discrimination and Consumer Surplus
Factors Affecting Long-Run Equilibrium in Monopoly Markets
Identification of Market Structure
17.1 Econometric Approaches
17.2 Simpler Measures
Summary
Practice Problems
Solutions
10
Aggregate Output, Prices, and Economic Growth
Introduction
Aggregate Output and Income
2.1 Gross Domestic Product
2.2 The Components of GDP
2.3 GDP, National Income, Personal Income, and Personal Disposable Income
2.4 Relationship among Saving, Investment, the Fiscal Balance and the Trade Balance
Aggregate Demand and Aggregate Supply
3.1 Aggregate Demand
3.2 Aggregate Supply
3.3 Shifts in the Aggregate Demand Curve
3.4 Equilibrium GDP and Prices
Economic Growth and Sustainability
4.1 The Production Function and Potential GDP
4.2 Sources of Economic Growth
4.3 Measures of Sustainable Growth
4.4 Measuring Sustainable Growth
Summary
Practice Problems
Solutions
11
Understanding Business Cycles
Introduction
Overview of the Business Cycle
2.1 Phases of the Business Cycle
2.2 Leads and Lags in Business and Consumer Decision Making
2.3 Market Conditions and Investor Behavior
Credit Cycles and Their Relationship to Business Cycles
3.1 Applications of Credit Cycles
3.2 Consequences for Policy
Business Cycle Fluctuations from a Firm’s Perspective
4.1 The Workforce and Company Costs
4.2 Fluctuations in Capital Spending
4.3 Fluctuations in Inventory Levels
Consumer Behavior
5.1 Consumer Confidence
5.2 Measures of Consumption
5.3 Income Growth
5.4 Saving Rates
Housing Sector Behavior
6.1 Available Statistics
6.2 Sensitivity to Interest Rates and Relationship to Credit Cycle
6.3 The Role of Demographics
6.4 Impact on the Economic Cycle
External Trade Sector Behavior
7.1 Cyclical Fluctuations of Imports and Exports
7.2 The Role of the Exchange Rate
7.3 Overall Effect on Exports and Imports
Theoretical Considerations
8.1 Historical Context
8.2 Neoclassical Economics
8.3 The Austrian School
8.4 Monetarism
8.5 Keynesianism
8.6 Modern Approach to Business Cycles
Economic Indicators
9.1 Types of Indicators
9.2 Composite Indicators
9.3 Leading Indicators
9.4 Using Economic Indicators
9.5 Other Composite Leading Indicators
9.6 Surveys
9.7 The Use of Big Data in Economic Indicators
9.8 Nowcasting
9.9 GDPNow
Unemployment
10.1 Unemployment
Inflation
11.1 Deflation, Hyperinflation, and Disinflation
11.2 Measuring Inflation: The Construction of Price Indexes
11.3 Price Indexes and Their Usage
11.4 Explaining Inflation
Summary
Practice Problems
Solutions
4
Economics (2)
12
Monetary and Fiscal Policy
Introduction to Monetary and Fiscal Policy
1.1 Monetary Policy
Money: Functions, Creation, and Definition
2.1 The Functions of Money
2.2 Paper Money and the Money Creation Process
2.3 Definitions of Money
Money: Quantity Theory, Supply and Demand, Fisher Effect
3.1 The Demand for Money
3.2 The Supply and Demand for Money
3.3 The Fisher Effect
Roles of Central Banks & Objectives of Monetary Policy
4.1 The Objectives of Monetary Policy
The Costs of Inflation
Monetary Policy Tools7
6.1 Open Market Operations
6.2 The Central Bank’s Policy Rate
6.3 Reserve Requirements
6.4 The Transmission Mechanism
Inflation Targeting
7.1 Central Bank Independence8
7.2 Credibility
7.3 Transparency
Exchange Rate Targeting
Monetary Policies: Contractionary, Expansionary, Limitations
9.1 What’s the Source of the Shock to the Inflation Rate?
9.2 Limitations of Monetary Policy
Roles and Objectives of Fiscal Policy
10.1 Roles and Objectives of Fiscal Policy
Deficits and the National Debt
Fiscal Policy Tools
12.1 The Advantages and Disadvantages of Using the Different Tools of Fiscal Policy
12.2 Modeling the Impact of Taxes and Government Spending: The Fiscal Multiplier
12.3 The Balanced Budget Multiplier
Fiscal Policy Implementation
13.1 Deficits and the Fiscal Stance
13.2 Difficulties in Executing Fiscal Policy
The Relationship between Monetary and Fiscal Policy
14.1 Factors Influencing the Mix of Fiscal and Monetary Policy
14.2 Quantitative Easing and Policy Interaction
14.3 The Importance of Credibility and Commitment
Summary
Practice Problems
Solutions
13
International Trade and Capital Flows
Introduction & International Trade-Basic Terminology
1.1 International Trade
Patterns and Trends in International Trade and Capital Flows
Benefits and Costs of International Trade
Comparative Advantage and the Gains from Trade: Absolute and Comparative Advantage
4.1 Gains from Trade: Absolute and Comparative Advantage
Ricardian and Heckscher–Ohlin Models of Comparative Advantage
Trade and Capital Flows: Restrictions & Agreements- Tariffs, Quotas and Export Subsidies
6.1 Tariffs
6.2 Quotas
6.3 Export Subsidies
Trading Blocs, Common Markets, and Economic Unions
Capital Restrictions
Balance of Payments- Accounts and Components
9.1 Balance of Payments Accounts
9.2 Balance of Payment Components
Paired Transactions in the BOP Bookkeeping System
10.1 Commercial Exports: Transactions (ia) and (ib)
10.2 Commercial Imports: Transaction (ii)
10.3 Loans to Borrowers Abroad: Transaction (iii)
10.4 Purchases of Home-Country Currency by Foreign Central Banks: Transaction (iv)
10.5 Receipts of Income from Foreign Investments: Transaction (v)
10.6 Purchase of Non-financial Assets: Transaction (vi)
National Economic Accounts and the Balance of Payments
Trade Organizations
12.1 International Monetary Fund
12.2 World Bank Group
12.3 World Trade Organization
Summary
Practice Problems
Solutions
14
Currency Exchange Rates
Introduction & The Foreign Exchange Market
1.1 The Foreign Exchange Market
Market Functions
Market Participants, Size and Composition
3.1 Market Size and Composition
Exchange Rate Quotations
4.1 Exchange Rate Quotations
Cross-Rate Calculations
Forward Calculations
Exchange Rate Regimes- Ideals and Historical Perspective
7.1 The Ideal Currency Regime
7.2 Historical Perspective on Currency Regimes
A Taxonomy of Currency Regimes
8.1 Arrangements with No Separate Legal Tender
8.2 Currency Board System
8.3 Fixed Parity
8.4 Target Zone
8.5 Active and Passive Crawling Pegs
8.6 Fixed Parity with Crawling Bands
8.7 Managed Float
8.8 Independently Floating Rates
Exchange Rates and the Trade Balance: Introduction
Exchange Rates and the Trade Balance: The Elasticities Approach
Exchange Rates and the Trade Balance: The Absorption Approach
Summary
Practice Problems
Solutions
Financial Statement Analysis
5
Financial Statement Analysis (1)
15
Introduction to Financial Statement Analysis
Introduction
Scope of Financial Statement Analysis
Major Financial Statements - Balance Sheet
3.1 Financial Statements and Supplementary Information
Statement of Comprehensive Income
4.1 Income Statement
4.2 Other Comprehensive Income
Statement of Changes in Equity and Cash Flow Statement
5.1 Cash Flow Statement
Financial Notes, Supplementary Schedules, and Management Commentary
6.1 Management Commentary or Management’s Discussion and Analysis
Auditor's Reports
Other Sources of Information
Financial Statement Analysis Framework
9.1 Articulate the Purpose and Context of Analysis
9.2 Collect Data
9.3 Process Data
9.4 Analyze/Interpret the Processed Data
9.5 Develop and Communicate Conclusions/Recommendations
9.6 Follow-Up
Summary
Practice Problems
Solutions
16
Financial Reporting Standards
Introduction
The Objective of Financial Reporting
Accounting Standards Boards
3.1 Accounting Standards Boards
Regulatory Authorities
4.1 International Organization of Securities Commissions
4.2 The Securities and Exchange Commission (US)
4.3 Capital Markets Regulation in Europe
The International Financial Reporting Standards Framework
5.1 Qualitative Characteristics of Financial Reports
5.2 Constraints on Financial Reports
The Elements of Financial Statements
6.1 Underlying Assumptions in Financial Statements
6.2 Recognition of Financial Statement Elements
6.3 Measurement of Financial Statement Elements
General Requirements for Financial Statements
7.1 Required Financial Statements
7.2 General Features of Financial Statements
7.3 Structure and Content Requirements
Comparison of IFRS with Alternative Reporting Systems
Monitoring Developments in Financial Reporting Standards
9.1 New Products or Types of Transactions
9.2 Evolving Standards and the Role of CFA Institute
Summary
Practice Problems
Solutions