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This blog is an extension of our blog on CFA Webinar on Ethics and Corporate Finance.

Round three of the CFA Webinar Question Answer sessions! This will aid your CFA prep in more ways than one. Find below a recording of the discussion on CFA Economics.

The answers to the questions are given right here as well.

Find here a brief summary of some of the most important points of CFA Economics:

Question 1:

Explain demand function in detail.

Answer 1:

It is the behavioural relationship between quantity consumed and a person’s maximum willingness to pay for the particular quantity. If the price is higher, that means lesser quantity demanded by buyers or vice-versa. There are many factors that influence a buyer’s decision. For example – Income, taste & preferences, price of substitute goods.

Question 2:

Is the increase in the prices of onions an example of cost pull inflation?

Answer 2:

Yes, you can say this one is an example of cost pull inflation.

Question 3:

Can you touch upon monetary and fiscal policy?

Answer 3:

Monetary policy – Federal bank takes action in regards to monetary policy.

This is done through:

  • Policy rate
  • Reserve requirement
  • Open market operation

    • Fiscal Policy – Government deals with this when they use spending and taxation to take control over the economy.

    To read more, just follow the link to CFA Webinar on Fixed Income and Equity.

    If you have any queries, comments or questions feel free to post them in the comments section or visit our forum.

    There will be subsequent blogs on more questions and discussions that will take place on the following days. So stay tuned for more!