SIE Exam Practice Question 143

Correct Answer: C

Explanation:

Stock market prices, permits for building, and changes in business and consumer borrowing are all considered to be leading economic indicators in that they each act as signals of an impending change to the economy and, accordingly, can be observed prior to the actual change. Corporate profits and losses are considered to be lagging economic indicators in that these types of effects are more observable after the change in the economy has already occurred.