In context with bank interest rates, if an interest rate is reduced by 50 basis points it means an effective reduction of

In context with bank interest rates, if an interest rate is reduced by 50 basis points it means an effective reduction of ___:
[A]50%
[B]5%
[C]0.5%
[D]0.05%

0.5%
Basis Points is a unit of measurement which is equal to 1/100th of 1%. This is used to measure changes in interest rates, stock-market indices or yield on fixed income securities. For example, if an interest rate is reduced by 50 basis points it means an effective reduction of 0.5%.

Advertisement

Category: Banking Exams Material Section

This question "In context with bank interest rates, if an interest rate is reduced by 50 basis points it means an effective reduction of" was published on GKToday on May 18, 2015 at 1:22 pm. For Current Affairs Questions Archive Click Here. For General Knowledge Questions Archive Click Here.

Comments