CFA Practice Question

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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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