- CFA Exams
- CFA Exam: Level I 2021
- Study Session 4. Economics (1)
- Reading 15. Understanding Business Cycles
- Subject 5. Economic Indicators
CFA Practice Question
Which one is generally considered to be a leading indicator?
B. Industrial production index
C. Inventory-sales ratio
A. S & P 500 stock index
B. Industrial production index
C. Inventory-sales ratio
Correct Answer: A
Stock prices anticipate economic turning points.
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