1. Economics for BAT: 1-Pager CFA L1 & L2: Economic Theories 50% Fed News 40% COD 10% By Shivgan Joshi shivgan3@gmail.com Central Bank & history of Fed Types of money in the system 3 Balancing aspects: Interest rate vs. Inflation effect vs. UE vs. Forward currency (FRB Index) 2003-2008-2012 Federal Reserve Sterilized QE by ECB Role of China in US Financial System, Yuan Manipulation, Reserve of UT Bonds Currency Wars? Global Inflation caused by FR? Cross currency Arbitrage Deadweight Loss Indian Currency trends 55-50-60 J Curve

2. Economics CFA L2 Numerical Economic Growth Government Regulation Gross Domestic Product (or Measuring Economic Activity) International Trade Foreign Exchange Rate Systems and Parity Relationships Currency – bid ask – forward – inflation – etc Relation between labor capital production 1/3

3. Economics CFA L2 Tough Questions Numerical Taylor rule Three capital account – Taylors theory of capital Currency & interest forward Effect of currency on many things – three things that effect currency Three growth theories - % of growth and other things Taylor rule to determine the appropriate policy rate is TFP GDP growth rates Y = AF(K, L) Taylor rule, Mundell–Fleming model, Rüdiger Dornbusch

4. Portfolio CFA L2 10 Minutes refresher Concepts – MVA – Multifactor – n assets Active Portfolio – Information ratio – Tenor – Weights - new beta IPC