econ — CFA Level I Practice Questions

31 free CFA Level I questions on econ: 10 easy, 15 medium, and 6 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn econ from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.

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1. A monopolist maximizes profit where MR = MC =20. At this quantity, the price on the demand curve is 45 and ave
2. A strategy at Vesper Foods generates a nominal return of 6.70%. If inflation is 2.40%, the exact real return i
3. Helion Rail's fixed income portfolio returns a nominal 5.20%. With inflation at 1.70%, the exact real return i
4. If Oakridge Capital achieves a nominal return of 5.00% and inflation is 2.50%, what is the exact real return?
5. Helion Rail reports a high nominal return of 12.00% while inflation is 6.00%. The exact real rate is closest t
6. Vesper Foods is hedging a transaction and sees EUR/USD = 0.9150 and USD/JPY = 0.0065. To find the EUR/JPY cros
7. Helion Rail is checking for arbitrage. Market quotes are USD/EUR = 1.10, JPY/USD = 150, and JPY/EUR = 166. The
8. The board of Apex Global is concerned that the portfolio's 9… — This specific concern is best addressed by whi
9. Vesper Foods sees EUR/USD = 0.9250 and USD/GBP = 1.2800. The EUR/GBP cross-rate is:
10. Oakridge Capital wants the CHF/GBP cross-rate and has USD/GBP = 1.2700 and USD/CHF = 1.1100. The cross-rate is
11. A central bank at a fictional country significantly increases its target interest rate. All else equal, this a
12. In a Nash equilibrium payoff matrix, a 'dominant strategy' is one that:
13. If the corporate tax rate is 25% on all interest income and expected inflation is 3.0% annually, which of the
14. Helion Rail is analyzing its stock return for the past year. The share price moved from $50 to $55, and a $2 d
15. Which of the following items is most likely included in the calculation of the Consumer Price Index (CPI) but
16. Redhook Ports operates in an economy where nominal GDP is $28.8 billion and real GDP is $24.0 billion. The val
17. Juniper Health consumes imported medical supplies. If the price of these imports rises while domestic prices r
18. Which metric is generally considered a better measure of the total income available to a country's residents?
19. Which of the following would cause a change in 'quantity demanded' for Sable Payments' services rather than a
20. During an economic downturn, the total amount of unemployment insurance paid to workers in the Juniper Health
21. If the USD/EUR exchange rate increases from 1.0850 to 1.1200, the percentage depreciation of the U.S. Dollar i
22. The central bank of a small economy decides to 'peg' its currency to the U.S. Dollar. By doing so, it most lik
23. According to the principle of covered interest rate parity, if the 12-month interest rate in the United States
24. A currency's spot rate is 1.50 USD/GBP and the 12-month forward rate is 1.53 USD/GBP. This indicates that the
25. Which of the following is most likely a primary goal of a central bank's monetary policy?
26. A limit on the quantity of a good that can be imported into a country is known as a:
27. A bank quotes a stated annual rate of 6.0% with quarterly compounding. The effective annual rate (EAR) is clos
28. A monopolist is currently producing at an output level where MR = $20 and MC = $25. To maximize profit, the fi
29. When an economy is in a recession and real GDP is falling, automatic stabilizers like unemployment insurance u
30. Sable Payments operates in an oligopoly and observes that its rivals match price cuts but ignore price increas