Macroeconomics for Financial Markets Module (Intermediate) Practice Exam

Knowledge of Economics is essential for comprehending the functioning of financial markets. There exist complex connections among different economic elements and financial parameters, which can exert both direct and indirect influences on financial markets. An understanding of economics enables the identification of the origins of diverse economic phenomena and the anticipation of the potential consequences of policy alterations.

The "Macroeconomics for Financial Markets Module (Intermediate)" aims to enhance learners with a fundamental comprehension of various macroeconomic principles and an insight into macroeconomic trends. Its objectives include acquiring a foundational understanding of various macroeconomic principles and gaining insight into macroeconomic trends.

Who should take the exam?

The exam is best for:

• Students of Management and Commerce
• Economists
• Finance Professionals
• Stock Analysts
• Employees with financial institutions
• Anybody having interest in this subject

Exam Details

• Exam Name: Macroeconomics for Financial Markets Module (Intermediate)
• Exam Languages: English
• Exam Questions: 60 Questions
• Time: 120 minutes
• Passing Score: 60%

Exam Course Outline 

The exam covers the given topics  - 

Topic 1: Overview of Macro Economics

• Introduction
• Microeconomics and Macroeconomics
• Why Macroeconomics is important for the financial sector
• The concept of ‘equilibrium’ in economics
• Broad outline

Topic 2: Understand Inflation and Interest Rates

• What is inflation?
• How to measure inflation?
• Theories of inflation
• Impact of inflation on macroeconomic variables
• Controlling inflation
• Interest Rates
• Factors affecting the level of Interest Rate
• Impact of Interest Rates
• Concept of Real Interest Rate

Topic 3: Learn about National Income Accounting

• National Income Accounting: Measuring Economic Activity
• Some other ways to measure National Income
• Saving and Investment in India
• The changing composition of India’s economic environment

Topic 4: Government and Fiscal Policy

• Role of the Government in an Economy
• Government Expenditure and Revenue: Understanding the Government accounts
• Bringing together the Revenue and the Expenditure side
• The Deficit Indicators
• Financing of deficit by the Government
• Fiscal Deficit and sustainability of Internal Debt
• Fiscal policies and their impact on the financial markets

Topic 5: Money and Monetary Policy

• What is the role of Money?
• Components of Money in India
• Demand for Money
• Supply of Money
• Different roles of RBI in India
• Role of Commercial Banks in Money Supply
• Other Instruments of Money Supply
• Market Stabilization Scheme
• Use of Monetary policy
• Use of Fiscal policy

Topic 6: The External Sector: Open Economy Macroeconomics

• Why do countries trade?
• India and International Trade
• Balance of Payments
• Foreign Direct Investment
• Foreign Portfolio Investment
• Exchange Rates
• Foreign Exchange Reserves
• Impact of capital flows on money supply
• Sterilization of Capital Flows

Topic 7: Financial Markets

• Basic roles of the financial market
• Why and how are financial markets different from other markets?
• Role of different financial systems: Bank based financial systems and Capital Market based financial systems
• Role and contribution of different segments in India’s Financial Market
• The Equity Market
• Derivatives Market in India
• The Debt Market

Topic 8: Regulatory Institutions in India

• Role of regulatory institutions in a market-based economy
• The Reserve Bank of India (RBI)
• The Securities and Exchange Board of India (SEBI)
• Insurance Regulatory and Development Authority (IRDA)
• Pension Fund Regulatory and Development Authority (PFRDA)
• Forward Markets Commission (FMC)
• Stock Exchanges in India