Archives: Terms

Definition of Cross-Price Elasticity Cross-price elasticity of demand measures how the quantity demanded of one good changes in response to a change in the price of another good. It is a critical concept in economics that illustrates the relationship between two goods – showing whether they are substitutes or complements. […]

Definition of Cross-Holding (of Shares) Cross-holding refers to the situation where a company holds stock in another company, and that second company holds stock in the first company. This can create a complex web of ownership that makes it difficult to understand the true economic value and risks associated with […]

Definition of Critical Value A critical value is a concept in statistics that plays a crucial role in hypothesis testing. It is a point on the distribution curve that separates the region where the null hypothesis is not rejected from the region where the null hypothesis can be rejected with […]

Definition of Critical Path Analysis Critical Path Analysis (CPA), also known colloquially as Critical Path Method (CPM), is a project management technique used for scheduling project activities. It identifies the longest stretch of dependent activities and measures the time required to complete them from start to finish. This longest path […]

Definition of Creeping Inflation Creeping inflation refers to the situation in which the price level of goods and services rises slowly over a period of time at a modest rate. Typically, an annual inflation rate of 1 to 3 percent is considered creeping inflation. This type of inflation is often […]

Definition of Creditworthiness Creditworthiness refers to the assessment of an individual’s or entity’s likelihood to repay debt. It is a gauge of the trust lenders place in borrowers based on their history of borrowing and repaying, as well as their current financial condition. Factors such as credit scores, income level, […]

Definition of Creditors Creditors refer to individuals, businesses, or any entities that lend money or extend credit to others. They have a legal right to receive payment from borrowers according to the terms and conditions specified in the lending agreement. Creditors can be categorized into two main groups: secured and […]

Definition of Creditor Nation A creditor nation is a country with a net positive international investment position (IIP), meaning that its investments in other countries exceed foreign investments within its borders. This position indicates that the rest of the world owes more to the creditor nation than the creditor nation […]

Definition of Credit Rating Agency A credit rating agency (CRA) is an institution that assesses the creditworthiness of issuers of financial securities, such as corporations, sovereign governments, municipalities, and other entities issuing debt. These agencies provide investors with information on the relative risk associated with investing in a particular debt […]

Definition of Credit Standing Credit standing, also known as creditworthiness or credit rating, is a valuation or assessment of an individual’s or entity’s ability to repay debts. It encompasses the history of borrowing and repaying, as well as the punctuality of payments. Credit standing is crucial for lenders and financiers […]