Which Statement Uses the Term Ceteris Paribus Correctly

question 166

Multiple Choice

Which statement uses the term ceteris paribus correctly?

• A) If you exercise regularly,you will be healthier,ceteris paribus.
• B) Blue is to green,ceteris paribus,as red is to purple.
• C) Most people consider Sunday to be the first day of the week,ceteris paribus.
• D) Interest rates usually rise in October,ceteris paribus.
• E) a and d

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Definitions:

FA/Sales Ratio

The Fixed Asset to Sales Ratio compares a company's total amount of fixed assets to its sales revenue, indicating how efficiently the company uses its fixed assets to generate sales.

Financial Forecast

A prediction of future revenues, expenses, and profits for a specific period.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Default Risk

The risk that a borrower will not pay the interest and/or principal on a loan as it becomes due. If the issuer defaults, investors receive less than the promised return on the bond. Default risk is influenced by both the financial strength of the issuer and the terms of the bond contract, especially whether collateral has been pledged.