- CFA Exams
- CFA Level I Exam
- Study Session 4. Economics (1)
- Reading 15. Understanding Business Cycles
- Subject 5. Economic Indicators
CFA Practice Question
If you observe an increase in the reported ratio of consumer installment debt to income, it is highly likely that an upturn ______
B. is just about to occur.
C. will occur sometime in the future.
A. has occurred.
B. is just about to occur.
C. will occur sometime in the future.
Correct Answer: A
The ratio of consumer installment debt to income is a lagging indicator.
User Contributed Comments 3
| User | Comment |
|---|---|
| babycdq | WHY |
| MDrisc20 | Consumer installment debt would increase during an upturn since consumers have confidence in steady/growing income |
| khalifa92 | and consumers payrolls are coincident indicators |