CFA Practice Question

There are 539 practice questions for this study session.

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 ______

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
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