The Series 86 current event questions have thrown some students for a loop. As a relatively new variety of questions have been included in the Series 86 exam, we discuss how to answer them. Let’s start with the what.
Series 86 Current Event Questions…How is This Relevant?
On the Series 86 exam, there are more current event questions then have historically been the case.
For instance, some questions, discuss student debt forgiveness, others include tariffs, and others even address healthcare.
Sometimes the best way to answer these questions is to try to figure out what subject they are related to in the textbook. For instance, when it comes to student loan forgiveness, that is another form of a subsidy. Subsidies drive demand higher for a particular good or service beyond what would naturally occur. Therefore, if you are effectively offering students money toward college, then you should expect demand to increase. The corollary is that demand increases pricing and potentially causes inflation.
How Do I Study for These?
Unfortunately there is no real easy way to study these types of questions. You’ll need to be as knowledgeable as you can be about the various sections – usually economic-related. Since most current event questions have to do with the economy, familiarity with the macroeconomic topics will help.
We recommend one last thing when it comes to studying for potential current event questions. That is, not to think too deeply when it comes to the questions. For example knowing something as simple as the fact that a tariff is a tax will help. Ask yourself what does extra tax on the price of anything you purchase do to the total price? Answer: It increases the price. Hence, tariffs are often inflationary – something potentially worth knowing for the exam.
Overall, we recommend that you anticipate questions beyond the core multiples, ratios, and valuation questions. While current event questions can seem more “grey”, they follow the same logic as elsewhere on the exam. Please feel free to reach out if you have any questions. Good luck!