Series 7: 9.1.1.3 Important Lagging Indicators

Taken from our Series 7 Top-off Online Guide

9.1.1.3  Important Lagging Indicators

Consumer Price Index (CPI). The CPI is a monthly report released by the Bureau of Labor and Statistics. It measures changes in the price of a “basket of goods” that a typical consumer might purchase, including food and energy products. The CPI is considered the best measure of inflation. The release of the CPI has a large effect on both the equity and debt markets because it gives a strong indication of whether the Federal Reserve will alter interest rates.

Other lagging indicators:

  • Business spending
  • Unemployment rate
  • Prime rate charged by banks
  • Bank loans outstanding
  • Employment Cost Index (ECI)—monthly changes in employee wages and benefits

The exam may ask a question like, “Which of the following is the best sign that the economy is either

Since you're reading about Series 7: 9.1.1.3 Important Lagging Indicators, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 7
Please Enable Javascript
to view this content!