Crowding Out Effect: How Government Spending Impacts Private Investment
The crowding out effect is the idea that larger government spending or borrowing can reduce private-sector spending and investment. In simple terms, when a…
Crowdfunding: What It Is, How It Works, and Popular Websites
• Crowdfunding is a method of raising capital by collecting relatively small amounts of money from a large number of people, typically via internet…
Cross Selling: Definition, Pros and Cons, vs. Upselling
• Definition: Cross-selling is offering customers additional products or services that complement what they already own or are buying. Example: a bank offering a…
Cross Price Elasticity: Definition, Formula, and Example
• Definition: Cross elasticity of demand measures how much the quantity demanded of one product (X) changes in response to a price change in…
Cross Culture: Definition, Examples, and Differences Across Countries
• Cross culture refers to recognizing and managing differences in values, social norms, language, and behaviors among people from different national, regional, ethnic, or…
Credit Score
A credit score is a three-digit number that summarizes an individual’s creditworthiness — how likely they are to repay borrowed money. Lenders and service…
Credit Limit
Definition – Credit limit: the maximum amount a lender permits you to borrow on a revolving account (for example, a credit card or a…
Credit Unions: Definition, Membership Requirements, and vs. Banks
A credit union is a member-owned financial cooperative that offers many of the same services as a bank — checking, savings, loans, mortgages, and…
Credit Spread: What It Means for Bonds and Options Strategy
• A credit spread is the difference in yield between two debt instruments that share the same maturity but differ in credit quality. It…
Credit Risk: Definition, Role of Ratings, and Examples
• Credit risk is the chance a lender or creditor will suffer a loss because a borrower does not repay principal and/or interest as…