The Chartered Financial Analyst exam or CFA exam is one of the most important for individuals who are preparing for degrees related to the field of finance, economics, accounting, or business. It is a full program of a three-part exam that assesses one’s basic knowledge of the fundamental tools, portfolio management, wealth planning, and valuing assets.
Specifically preparing for the CFA level 1 economics exam can be tough as it has a huge list of subjects, and if you are someone who is trying to crack this exam then the below-given list of suggestions of important subjects can be of help.
- Aggregate Output, prices, and Economic Growth – It is a very important topic for understanding the macroeconomic concepts of gross domestic products, aggregate supply and demand, and different aspects of economic growth.
- Understanding business cycles – This topic discusses different business cycles, unemployment, and also about the difference between disinflation, inflation, hyperinflation, and deflation.
- Monetary and fiscal policy – This topic talks about the various government tools for guiding and controlling a country’s economy through different policies.
- International trade capital flows – There are many places that provide CFA level 1 exam preparation classes and give special importance to this topic. This topic talks about the flow of capital between different nations for trade purposes and also focuses on the good and bad sides of international trade relations.
- The firm and market structures – This topic is very important for exam candidates who want to focus on business professions later in life, this talks about the way one business interacts with another business. Moreover, it also focuses on different market structures like perfect competition, monopoly, oligopoly, monopolistic competition, and many more.
Tips to ace any CFA level 1 exam
Taking proper CFA level 1 exam preparation classes, proper planning, and most importantly help from a skilled preparation provider can be of help while preparing for an exam as tough as the Chartered Financial Analyst exam or CFA exam. Here are some exam tips and study tips that can help you if you are someone who is studying to ace the said exam.
- Create a study plan – Developing a proper study plan is the most important thing that you should do while preparing for a CFA level 1 economics exam. Try to spread the preparation time over the duration of 6 months. This will help you to create an effective routine that will not only help you in understanding all the topics but also give you some time to relax and take a quick breather.
- Avoid wasting any time – The Institute of CFA recommends all aspirants study at least 285 hours, that is completely depending on their time management skills, their studying capacity, and previous educational background.
- Take a prep course – It can be tough to single-handedly tackle the preparation required to crack the CFA level 1 exam and it will only lead to missing deadlines, overlooking details, missing out on study materials, and misspending time. Good CFA level 1 preparation classes will help you in saving time in your exam preparation and also perform well in the exam. These preparation classes will also help you in completing difficult topics strategically within a short span of time.
- Focus on concepts more than math – The whole exam setup of the CFA level 1 exam is conceptual, which means it tests your skills of understanding the different concepts of subjects like maths and economics. This is why it is important to properly focus on the maths-related questions of different subjects. Moreover, it can be very beneficial if you can create a complete sheet of all formulas along with attending CFA level 1 preparation classes.
- Practice is the key – CFA exams are extremely lengthy, and each level is for 6 hours so time management is extremely important to crack these exams. Time management doesn’t develop within a day, it takes hours of practice on a daily basis. Moreover, the more you practice the better it is for you, you will be able to finish more topics within a short span of time.
- Take proper breaks – Taking time-to-time breaks is extremely important to break the monotony of any work. Exams like CFA level 1 economics are really tough so it is quite natural that the preparation level of this exam will automatically make you feel overwhelmed and can also lead to brain fatigue. So it is best to set an alarm for every 1 hour so that you get reminded to take breaks from time to time.
- Learn and practice using an advanced calculator – As the CFA level exams are so tough, you are permissible to bring anyone out of the two models of a calculator during your exam, when the choice is between a normal calculator and a financial calculator, the later is definitely a winner. A standard calculator is good and you can easily do all the jobs there but an advanced financial calculator will be able to help you calculate tough and critical numerical problems. Take time out of your preparation period to practice working with a financial calculator. Having a financial calculator with you can really help you in cracking some good marks.
The CFA level 1 exam is not a joke, it is one of the toughest exams so it is important to prepare for these exams with a proper strategy. The only way in which one can ace these exams is by having a proper strategic study plan. If you are someone who is trying to get a high score in these exams try to follow the above-listed suggestions and tips while taking part in proper CFA level 1 preparation classes.