CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

Margin debt cannot be used as a ______.

A. sentiment indicator
B. momentum indicator
C. flow-of-funds indicator
Correct Answer: B

It can be used as either a sentiment indicator or a flow-of-funds indicator.

User Contributed Comments 3

User Comment
dipu617 Why or why not? Anybody?
johntan1979 ^ = same person who don't read who keep asking why

*IGNORE*
sgossett86 lol john. i like u. my email is sgossett@umd.umich.edu if u want to contact me.

margin debt is money for buying assets on credit. if it's not being used or if it is being used that represents sentiment towards the asset value and flow of funds, where it doesn't say anything about an asset's momentum.
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