Which of the Following Is the Definition of a Leading

question 24

Multiple Choice

Which of the following is the definition of a leading indicator?

• A)It is an informal way of measuring the purchasing power parity between two currencies.
• B)It is a measurement of consumer confidence,which is defined as the degree of optimism about the state of the economy.
• C)It is an economic indicator found by adding the unemployment rate to the inflation rate of an economy.
• D)It is an indicator to measure changes in the price level of consumer goods and services purchased by households.
• E)It is an objective measure that accurately predicts future labor demand.

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Definitions:

Liquid Accounts

Refers to financial accounts which hold assets that can be readily converted into cash, often with little to no loss in value, such as savings accounts or money market accounts.

Profitability Ratios

Financial metrics used to evaluate a company's ability to generate profit relative to its revenue, assets, equity, or other financial metrics.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues; also known as net earnings or net profit.

Equity

Represents the shareholder's ownership interest in a company, calculated as the difference between total assets and total liabilities.