Macro transmission, currency logic, and economic signals viewed through Level II valuation questions.
Level II Economics is usually embedded inside valuation, currency, or portfolio interpretation rather than tested as a standalone economics textbook question. Strong answers come from linking the macro regime to the correct channel: rates, spreads, exchange rates, growth expectations, or risk premia.
That is why this chapter now starts with a grouped lesson batch instead of staying a placeholder root. The official curriculum still defines the coverage boundary, but the public structure is organized around the real online tasks candidates face: read the quotation correctly, choose the right parity or fair-value framework, decompose growth into its drivers, and judge whether long-run growth conditions are actually durable.
| Lesson | Official coverage boundary | What to focus on |
|---|---|---|
| Currency Quotes, Forward Pricing, and Triangular Arbitrage | Currency Exchange Rates: Understanding Equilibrium Value | Bid-offer direction, forward premium or discount, triangular arbitrage, and mark-to-market value. |
| Parity Conditions, Fair Value, and Currency Policy Effects | Currency Exchange Rates: Understanding Equilibrium Value | Covered versus uncovered parity, PPP, fair-value choice, carry trades, balance-of-payments pressure, intervention, and crisis signals. |
| Potential GDP, Growth Accounting, and Productivity | Economic Growth | Potential GDP, labor versus capital versus productivity, and why sustainable capacity matters for equity and fixed-income analysis. |
| Convergence, Demographics, Resources, and Long-Run Growth Policy | Economic Growth | Growth theory, convergence, demographic constraints, resource arguments, trade barriers, and policy support for long-run growth. |