You’re on a roll
Create a free account to save your CFA progress, track your accuracy by topic, and pick up right where you left off.
Free Questions › CFA › Economics
Free CFA Economics Practice Questions & Answers
2,050 exam-style Economics questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.
100% free · No login to startQuestion 991
Thematic risks:
Select an option first.
Correct answer: B — Evolve over long periods
Explanation: ✔ Why correct: They develop gradually, like climate change or cyber threats. Wrong: A, C, D: Not accurate.
Question 992
Cyber threats are considered:
Select an option first.
Correct answer: C — Thematic risks
Explanation: ✔ Why correct: Cyber risks grow over time and increase in scale. Wrong: A, B, D: Not correct.
Question 993
Cyberattacks have increased because:
Select an option first.
Correct answer: B — Internet and computer use expanded
Explanation: ✔ Why correct: More digital activity increases exposure. Wrong: A, C, D: False.
Question 994
Assessing geopolitical risk involves evaluating:
Select an option first.
Correct answer: B — Likelihood, velocity, and impact
Explanation: ✔ Why correct: All three dimensions matter. Wrong: A, C, D: Incomplete.
Question 995
Likelihood refers to:
Select an option first.
Correct answer: B — Probability of occurrence
Explanation: ✔ Why correct: Likelihood = probability. Wrong: A, C, D: Not definitions.
Get the full CFA question bank — free
Drop your email and we'll send you fresh CFA practice questions, fully worked solutions and exam-deadline reminders. No spam — unsubscribe in one click.
Want to save your score and take a full mock exam? Create a free account →
Question 996
Measuring likelihood is difficult because:
Select an option first.
Correct answer: B — Risks evolve unpredictably with many actors
Explanation: ✔ Why correct: Motivations and timing are complex. Wrong: A, C, D: Not true.
Question 997
Highly globalized countries are:
Select an option first.
Correct answer: B — Less likely to experience geopolitical risk but more exposed to spillovers
Explanation: ✔ Why correct: Cooperation reduces direct risk but increases exposure to partners’ risks. Wrong: A, C, D: Incorrect.
Question 998
Velocity refers to:
Select an option first.
Correct answer: B — Speed of impact
Explanation: ✔ Why correct: Velocity = how fast the risk affects portfolios. Wrong: A, C, D: Not definitions.
Question 999
High-velocity risks often cause:
Select an option first.
Correct answer: B — Immediate market volatility
Explanation: ✔ Why correct: Sudden shocks trigger rapid price movements. Wrong: A, C, D: Not accurate.
Question 1000
A black swan event is:
Select an option first.
Correct answer: B — Rare and hard to predict but impactful
Explanation: ✔ Why correct: Black swans are rare, unpredictable, and significant. Wrong: A, C, D: Incorrect.
Question 1001
Medium-term risks often:
Select an option first.
Correct answer: B — Impair processes, costs, and opportunities
Explanation: ✔ Why correct: They influence operations and valuations. Wrong: A, C, D: Not correct.
Question 1002
Long-term risks often affect:
Select an option first.
Correct answer: A — ESG factors and asset allocation
Explanation: ✔ Why correct: Long-term risks shape structural investment decisions. Wrong: B, C, D: Too narrow.
Question 1003
Impact refers to:
Select an option first.
Correct answer: B — Magnitude and nature of portfolio effects
Explanation: ✔ Why correct: Impact = size and breadth of consequences. Wrong: A, C, D: Not definitions.
Question 1004
Impact can be:
Select an option first.
Correct answer: C — Discrete or broad
Explanation: ✔ Why correct: Some risks hit one firm; others hit entire markets. Wrong: A, B, D: Too narrow.
Question 1005
Cyber risks can have:
Select an option first.
Correct answer: C — Both discrete and broad impacts
Explanation: ✔ Why correct: They can hit one firm or raise costs for all. Wrong: A, B, D: Incomplete.
Question 1006
A low-impact but high-likelihood risk:
Select an option first.
Correct answer: B — May not merit deep attention
Explanation: ✔ Why correct: High likelihood but small impact may not justify resources. Wrong: A, C, D: Not accurate.
Question 1007
A high-impact but low-likelihood risk:
Select an option first.
Correct answer: B — May merit scenario planning
Explanation: ✔ Why correct: Low likelihood but large consequences justify planning. Wrong: A, C, D: Too extreme.
Question 1008
Scenario analysis helps investors:
Select an option first.
Correct answer: B — Evaluate portfolio outcomes under different states of the world
Explanation: ✔ Why correct: Scenarios explore alternative futures. Wrong: A, C, D: Not true.
Question 1009
Scenario analysis strengthens:
Select an option first.
Correct answer: B — Conviction in prioritization and action
Explanation: ✔ Why correct: It clarifies priorities and timing. Wrong: A, C, D: Incorrect.
Question 1010
A base case scenario describes:
Select an option first.
Correct answer: B — The most impactful and likely outcome
Explanation: ✔ Why correct: Base case = central, impactful expectation. Wrong: A, C, D: Not definitions.
Question 1011
Upside and downside scenarios help investors:
Select an option first.
Correct answer: B — Consider alternative futures
Explanation: ✔ Why correct: They broaden understanding of possible outcomes. Wrong: A, C, D: Not accurate.
Question 1012
Quantitative scenarios may involve:
Select an option first.
Correct answer: B — Measuring sensitivity to key factors
Explanation: ✔ Why correct: They test portfolios against interest rates, prices, FX, etc. Wrong: A, C, D: Not correct.
Question 1013
Extreme-event scenarios help investors:
Select an option first.
Correct answer: B — Test portfolio resilience
Explanation: ✔ Why correct: They show how portfolios behave under stress. Wrong: A, C, D: Not accurate.
Question 1014
Groupthink in scenario analysis:
Select an option first.
Correct answer: B — Reduces creativity and independent thinking
Explanation: ✔ Why correct: Groupthink discourages diverse perspectives. Wrong: A, C, D: Incorrect.
Question 1015
Signposts are:
Select an option first.
Correct answer: B — Indicators showing a risk becoming more or less likely
Explanation: ✔ Why correct: Signposts track changes in risk likelihood, velocity, or impact. Wrong: A, C, D: Too narrow.
Question 1016
A “green” signpost means:
Select an option first.
Correct answer: B — No action needed
Explanation: ✔ Why correct: Green = low likelihood/impact. Wrong: A, C, D: Not correct.
Question 1017
An “amber” signpost indicates:
Select an option first.
Correct answer: B — Medium risk requiring caution
Explanation: ✔ Why correct: Amber = rising risk, prepare. Wrong: A, C, D: Not accurate.
Question 1018
A “red” signpost means:
Select an option first.
Correct answer: B — Action plan may be needed
Explanation: ✔ Why correct: Red = high likelihood/impact. Wrong: A, C, D: Opposite.
Question 1019
Brexit signposts turned red when:
Select an option first.
Correct answer: B — Polls showed “leave” gaining majority
Explanation: ✔ Why correct: Polls indicated a real chance of disruptive change. Wrong: A, C, D: Not the trigger.
Question 1020
Good signposts focus on:
Select an option first.
Correct answer: B — Policy changes that affect markets
Explanation: ✔ Why correct: Policy, not politics, drives durable market effects. Wrong: A, C, D: Not reliable.
More free CFA topics
Quantitative Methods1,213
Portfolio Management1,079
Fixed Income908
Financial Statement Analysis904
Corporate Issuers884
Portfolio Construction605
Alternative Investments540
Specialized Pathway - Private Markets500
Asset Allocation499
Derivatives498
Equity390
Performance Measurement295
Specialized Pathway - Portfolio Management253
Derivatives and Risk Management131
Ten questions in
- The ones you miss are saved as a drill you can repeat
- Your place is kept, on this device and any other
- A streak, if that is the thing that gets you back tomorrow
Every question on this page stays free and open either way.